Basically .... when you take the MARK TO MARKET election then all your positions are considered "sold" at the end of the year and all gains & losses are computed and reported on the return without consideration to the loss limitation rules as ordinary income not capital gains or losses. Then the basis for each position is reset to that figure and used for the next year's computations. A trader may also deduct the expenses of their "business" venture on the Sch C.
Please read up on this situation thoroughly before taking this step. https://www.thetaxadviser.com/issues/2010/feb/sec475mark-to-marketelection.html
