If you are a trader:
- You need to understand the rules, and think ahead.
- Making a MTM election will avoid the wash sale rules, but you need to think of your trader business and whether this is the right election for you. The timing of this election is key, and so is making sure you are not stuck with significant capital losses when you make this election. Once again, thinking ahead is key.
- Traders need to establish a "no trade list" if they want to avoid the agonies of the wash sale rules.
- Traders need to acquire software that will handle this process, such as Trade Log. This is just one example as there are other programs out there.
- tradelog.com
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
