My losses from the Schedule D then should be included on my Schedule C before transferring over to Line 12 of Form 1040.
That's not correct. You're confusing day trading with a Mark to Market election. With day trading your gains and losses still go on Schedule D but your business expenses such as margin interest, computer costs allocatable to the business, etc. go on Schedule C. In effect your losses will be on Schedule D (limited to $3,000 like everyone else) but your day trading expenses will go on Schedule C (unlike others classified as investors.)
It's too late to make a Mark to Market election for 2014 (and even for 2015.) The last day to make the election for 2015 was on April 15,
2015. Consequently, the earliest year you can make it for is next year - 2016.
The Fairmark Press site has an explanation of this:
·
http://www.fairmark.com/traders/mtmelec1.htm and
·
http://www.fairmark.com/traders/mtmelec2.htm
So does any of this $50,000 that I can't deduct in 2014 carry over to future years?
As noted, the $50,000 isn't deductible this year. As a day trader
without a Mark to Market election your losses are limited to $3,000 this year. The balance is carried over as a capital loss, not a business loss.
