I have a question about trading. If I wanted to apply for marked-to-market trading, do you have an option for this when filing a return electronically?

dadall — Tue, 10 Mar 2026 05:31:07 GMT

Part of the instructions state that the request must be sent in with a filed return. Is there an option to request this, or will I need to mail my return in next year?

Re: I have a question about trading. If I wanted to apply for marked-to-market trading, do you have an option for this when filing a return electronically?

Anonymous_ — Fri, 22 Jul 2022 20:58:54 GMT

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

In short, you will need to mail your return.

Re: I have a question about trading. If I wanted to apply for marked-to-market trading, do you have an option for this when filing a return electronically?

Mike9241 — Sat, 23 Jul 2022 00:20:04 GMT

A trader must make the mark-to-market election by the original due date (not including extensions) of the tax return for the year prior to the year for which the election becomes effective. 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.
Refer to the Instructions for Schedule D (Form 1040 or 1040-SR), Capital Gains and Losses PDF for more information on how to make the mark-to-market election. It's important to note that in general, late section 475(f) elections aren't allowed.

so to make the election for 2022, if you qualify, you would have had to make it with a timely filed 2021 return or extension for the 2021 return

if not, you'll have to wait until 2023 ( with a timely filed 2022 tax return or extension) to make the election for 2023

you probably should consult with a tax pro to make sure you qualify and that is better than not making the election

key items about a valid election

no wash sales

unrealized gain or loss is taken into account each year in determining profit/loss from trading

income/loss is ordinary

topic I have a question about trading. If I wanted to apply for marked-to-market trading, do you have an option for this when filing a return electronically? in Investors & landlords

I have a question about trading. If I wanted to apply for marked-to-market trading, do you have an option for this when filing a return electronically?

Re: I have a question about trading. If I wanted to apply for marked-to-market trading, do you have an option for this when filing a return electronically?

Re: I have a question about trading. If I wanted to apply for marked-to-market trading, do you have an option for this when filing a return electronically?