In TurboTax Home & Biz desktop, how to handle 1099-B for the MTM account?

[likesky1010]

I have a 1099-B for my MTM account.

I know there is no Schedule D and 8949 Forms for the MTM account.

I generated the data needed for the 4797 Form based on the original transaction history data. 

Now it seems this MTM account's 1099-B is useless.

1. Should I still report this 1099-B?

2. If yes, how to do it in TurboTax desktop edition? I need to paper return some forms and reports for the MTM account. Is it necessary to report this 1099-B?  There are more than a thousand pages. 

[MarilynG1]

If you qualify as a trader, you have two ways to report your income:

• If you have not made a Section 475(f) Mark-to-Market (MTM) election, then your trades are reported on Schedule D and Form 8949.
• If you have elected a Section 475(f) Mark-to-Market (MTM) election, then your trades are reported on Form 4797.

Without the election, gains and losses are recognized when the security is sold. They are treated and taxed as capital gains and losses and are subject to capital gains tax rates, as well as the limitation of losses and the wash sale rules. 

With the election, gains and losses are based on the value of your holdings at year-end. It's treated and taxed as ordinary income. The limit on losses and the wash sale rules don't apply. 

If you have made the election, here's How to Report Day Trader Activity.

@likesky1010 

[likesky1010]

@MarilynG1 

Thank you for your reply.

Yes, the MTM election was made with my 2023 tax return.

3115 and 4797 are ready to go. I am wondering how to handle the 1099-B.  Nowhere needs it. 

[fanfare]

Your trades are not listed on Form 4797.

IRS says:

In 4797 Part 1 (a). enter (as per IRS instructions) "Trader-see attached".

The attachment contains the details of all your trades for the calendar year.

Also don't forget Form 4797 Line 1.

[likesky1010]

In my case, 1099-B cannot be used in 4797 directly because it contains lots of wash sales data.  I have to generate a report to get the gains/losses based on original transaction history data from the broker.  This generated report should be attached to support the number in the 4797 form.  This is what I found from various sources. 

For 4797 line 1, I was told I don't need to fill it.  (https://ttlc.intuit.com/community/state-taxes/discussion/which-4797-form-option-should-i-select-in-t...)

The MTM trader tax return is complicated.  It is really hard to do. I am happy I am almost there with the help from the community.  Really appreciate the help from you guys.