It depends. Did you make a Market-to Market election to change the character of your gains from capital gain to ordinary income or to change your capital loss to a ordinary loss. If you did not make this election, you won't fill out Part 1V of 8621. This is something that day traders normally do to take advantage of daily fluctuations in the market place
If you did make this election in the beginning of the year, then you would need to report this as ordinary income or loss, on a 1040 rather than a LTCG. If you did not make the Market-to-Market election in the beginning of the year, You will still report your sale as a LTCG on your return.
Day Traders choose this election because they are not focused on profits from dividends, interest or capital appreciation. A big advantage to this is that since all positions are priced to year-end market prices, there are no wash sales to calculate or report. It also accelerates recognition of all gains or losses that had been deferred, but eliminates the opportunity to time the gain or loss in future years.
@Chuckles960
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