DavidD66
Expert Alumni

Investors & landlords

All the information you need to track your gains and losses using mark-to-market is in the brokerage statements.  I'm not saying you can't do it, I'm just saying it can get messy and cumbersome.  You'll need to do a reconciliation between mark-to-market and your brokerage statement/1099-B each year.  Year one will be very simple.  The next year you have to account for prior year adjustments, etc.  If you have options assigned, or what would be wash sales, had you not made a Section 475 election, it can complicate things.  If you were ever audited, the software and the supporting reports would be very helpful.  Taxpayers can prepare their own tax returns without using tax software, but why would anyone want to do so?   

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