I am self-employed. After a year of preparation, I started day trading this year (2024). I filed the 475(F) Mark to Market election with my 2023 tax return. I will file my first Form 3115 and Form 4797 with my 2024 tax return when the time comes.
I have four accounts with one of my brokers, but I only use one of them for day trading. And it will be a day-trade-only account. So, I notified the broker to update that account as a Mark to Market account to avoid Wash Sales.
I didn't notify my other brokers because I will not do day trading there. I will keep my original self-employed work unchanged. Its working hour starts at 5 pm Eastern time. Day trading is just a new addition. I want to minimize its (Day Trade with Mark to Market accounting) effect on my existing work and personal investments in terms of tax.
I have two questions here:
1. Will my above arrangement minimize the new Mark-to-Market day trade's effect on my existing investments taxing? I do have some other stock investments that need to be sold/bought occasionally. Will their gain/loss be treated as before (as capital gain/loss) that is different from the new Day Trading's gain/loss (as ordinary income gain/loss)?
2. I am married and file taxes jointly. I always use the TurboTax Home and Business Personal & Self-Employed edition for my tax return for many years. Can I still use the same TurboTax edition to do my tax return or to do the majority of parts? I heard that TurboTax does not support e-file Form 3115 and Form 4797. Can I e-file my non-day-trade part and paper file my day-trade part? Or do I have to paper file my entire tax return?
