Which 4797 Form option should I select in TurboTax?

[likesky1010]

The Enterable 4794 or the Form 4797 p1, or ...?

[MaryK4 · Accepted solution]

It depends what you are trying to do.  If you are entering the information directly in the forms, choose enterable.  

[likesky1010]

yes, I am going to input the 4797 form directly because TurboTax doesn't fully support MTM right now.

[DianeW777]

Only business gains go on page 2 (Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254, and 1255). 

Page 1 is for losses and gains, also depending on what it is, so it's important to know exactly what you are trying to enter directly.

• IRS Form 4797

@likesky1010 

[likesky1010]

@DianeW777 

Yes, you are right. I am an MTM trader. So I should select the first one. Because I need the first page. 

Do I need to fill in the 4797 Form Line 1?  Someone says for MTM day traders, the 1099-B should be attached to the tax return for information only, and should not be reported on Schedule D and Form 8949. If that is true. 4797 Form Line 1 should be ignored. Am I right?

[DianeW777]

No, you don't need to use Line 1. Yes, trades are reported on Form 4797 under Section 475(f) election.

The TurboTax FAQ below will be very helpful and provide good information for you in this new trade business.

• How do I report my trade activity with or without Section 475(f) election in TurboTax?

You may want to use TurboTax Desktop so review the article before you decide.

• How do I switch from TurboTax Online to TurboTax Desktop?

@likesky1010 

[likesky1010]

@DianeW777 

You are so helpful. Thank you very much.

I have two 1099-B forms for the same MTM account (A TD Ameritrade account then became a Schwab account). I have manually input them into my TurboTax desktop software. I saw there is Schedule D created and data was there.

Should I delete these two 1099-Bs from the TurboTax, or just delete the Schedule D (it is for these two 1099-Bs only)?

[ThomasM125]

The investment sale entries you make by entering the Form 1099-B's is used to create the Schedule D. Since you need to delete the Schedule D, you must delete the Form 1099-B entries, you can't delete it separately.

[Edited 2/28/25 at 5:11 AM PST]

@likesky1010 

[likesky1010]

@ThomasM125 The 1099-B is for my MTM (mark-to-market) securities trading account.  I was told there is no schedule D needed for the MTM account. The 4797 Form will be used. 

[ThomasM125]

Ok, then you need to delete the Form 1099-B entries, as that is the only way to delete the Schedule D.

[likesky1010]

@ThomasM125  Does that mean I don't need to file it to the IRS?

[DianeW777]

Yes, that's exactly what it means. You are not required to file Schedule D, since you have elected the Section 475(f) MTM election.

• If you have elected a Section 475(f) Mark-to-Market (MTM) election, then your trades are reported on Form 4797.

@likesky1010