I
haven't registered sole proprietorship...I don't have a fiticious
business name. extensive day trading on daily basis automatically puts
me in as sole proprietorship?
No registration is necessary nor due you need an assumed name to be a sole proprietorship. For
earned income, you are usually either an employee (and receive a Form W-2) or
are self-employed (i.e., own a business) and receive a Form 1099. While your
activity may not seem to rise to the level of a business, the IRS would
consider that it does.
For
a simple business such as yours, just use your name as the business name, and
your social security number as the business EIN.
What can I do to write off carry over capital losses completely? At first, I thought M2M election will take care of it.
The only way is to have offsetting capital gains. MTM is not a panacea for prior year losses.
Assuming
M2M election is done for 2016 year, can I write off 2015 day trading
losses?
Sorry, but no. The election only applies to years that the election is for and subsequent years. 2015 losses are still subject to the normal capital loss rules because there was no MTM election for that year.
If I end up with capital losses again this year, in 2017, can I
fully write off 2016 capital losses in day trading?
If you elect day trading in 2016 (by April 15) you can write off losses in 2016 on your 2016 tax return. On the other hand, if I was planning on having losses I would get out of day trading (sorry for the editorial comment.)
