Be careful. Not all tax preparer's understand the tax rules related to trader's / investor.
If you are actively trading with significant $$, then you need to find a tax professional that understands the rules.
You can be an active trader without the 475 election, but the wash sale rules do in fact impact you. The only benefit you get with TTS without the 475 election is you are able to deduct expenses on Schedule C.
To be eligible for trader tax status (TTS) is a subjective test. You can get some basic guidance from IRS Publication 550. This is not an easy "test" to meet.
If you are not making a 475 election
- I recommend getting educated on this matter as the results can be disastrous.
- Keep a "do not trade" list
Keep in mind that Section 1256 contracts are completely different.
This area is complex and beyond the scope of the forum.
*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.
