TTS business

Forum|Forum|5 years ago
August 4, 2020
2 replies
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Dear Sir,

I am qualified as TTS. I already formed LLD and as trader tax situation. Do I need to get section 475? I know the deadline is Apr 15. where do I get that section 475?

Best answer by Anonymous_

@mw30 wrote:

Do I need to get section 475?

If you want to be subject to the mark-to-market rules then you need to make the election.

You can make the election by attaching a statement either to your income tax return if filed without an extension or to a request for an extension of time to file your return. The statement should include the following information:

That you're making an election under section 475(f);
The first tax year for which the election is effective (that is, the tax year for which a timely election is being made); and
The trade or business for which you're making the election.

See https://www.irs.gov/taxtopics/tc429

If you are serious about this option, you should seek professional tax guidance.

Anonymous_Answer

Level 15

@mw30 wrote:

Do I need to get section 475?

If you want to be subject to the mark-to-market rules then you need to make the election.

That you're making an election under section 475(f);
The first tax year for which the election is effective (that is, the tax year for which a timely election is being made); and
The trade or business for which you're making the election.

See https://www.irs.gov/taxtopics/tc429

If you are serious about this option, you should seek professional tax guidance.

mw30Author

Level 2

Thank you very much for your feedback.I wonder which turbo tax program do I use if I file S corp? What about my personal taxes? Do I need to prepare two different turbo tax to get my personal taxes done?

Anonymous_

Level 15

@mw30 wrote:

Do I need to prepare two different turbo tax to get my personal taxes done?

Yes. You would need to use TurboTax Business (link below) to prepare a Form 1120-S for your S corporation and then use another TurboTax product, such as TurboTax Premier, to prepare your personal income tax return.

https://turbotax.intuit.com/small-business-taxes/

Note that TurboTax Business must be installed and run in a Windows environment; there is no online or Mac version. Also note that you should consider using a tax professional if you are not familiar with accounting principles for entities or return preparation.

mw30Author

Level 2

Hello,

I am planning to elect the LLC (only one person )tax as S corp this coming year. My question is that I have transferred some cash to my LLC stock trading account and I made some money. How the IRS knows that the money that makes includes some of the money I have funded to my account. It is the difference between the beginning balance Jan 1st of the year and the end of Dec 31st. I just wonder if I have some money to my LLC trading account that will be a double tax for the part of the money I funded. Thank you much!