Mark to market election? https://www.irs.gov/taxtopics/tc429
what's your question
but here is some information
To be engaged in business as a trader in securities, you must meet all of the following conditions:
You must seek to profit from daily market movements in the prices of securities and not from dividends, interest, or capital appreciation;
Your activity must be substantial; and
You must carry on the activity with continuity and regularity.
The following facts and circumstances should be considered in determining if your activity is a securities trading business:
Typical holding periods for securities bought and sold;
The frequency and dollar amount of your trades during the year;
The extent to which you pursue the activity to produce income for a livelihood; and
The amount of time you devote to the activity.
If the nature of your trading activities doesn't qualify as a business, you're considered an investor and not a trader. It doesn't matter whether you call yourself a trader or a day trader, you're an investor. A taxpayer may be a trader in some securities and may hold other securities for investment. The special rules for traders don't apply to those securities held for investment. A trader must keep detailed records to distinguish the securities held for investment from the securities in the trading business. The securities held for investment must be identified as such in the trader's records on the day he or she acquires them (for example, by holding them in a separate brokerage account).
Traders report their business expenses on Schedule C (Form 1040 or 1040-SR), Profit or Loss from Business (Sole Proprietorship). Commissions and other costs of acquiring or disposing of securities aren't deductible but must be used to figure gain or loss upon disposition of the securities. See IRS Topic No. 703, Basis of Assets. Gains and losses from selling securities from being a trader aren't subject to self-employment tax.
The Mark-to-Market Election (optional, generally used to avoid the issue of wash sales)
Traders can choose to use the mark-to-market rules, investors can't. If a trader doesn't make a valid mark-to-market election under section 475(f), then he or she must treat the gains and losses from sales of securities as capital gains and losses and report the sales on Schedule D/ Form 8949 as appropriate. When reporting on Schedule D, both the limitations on capital losses and the wash sales rules continue to apply. However, if a trader makes a timely mark-to-market election, then he or she treats trading gains and losses as ordinary gains and losses that must be reported on Part II of Form 4797, Sales of Business Property. Neither the limitations on capital losses nor the wash sale rules apply to traders using the mark-to-market method of accounting.
To make the mark-to-market election for 2024, you must have filed an election statement no later than the due date for your 2023 return (without regard to extensions). The statement must be attached to that return or with a properly filed request for extension of time to file that 2023 return (Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return). The statement must have included the following information:
That you are making an election under section 475(f)(1) or (f)(2) of the Internal Revenue Code.
The first tax year for which the election is effective.
The trade or business for which you are making the election.
If you are a new taxpayer and not required to file a 2023 income tax return, you make the election for 2023 by placing the above statement in your books and records no later than March 15, 2024. Attach a copy of the statement to your 2024 return.
If your method of accounting for 2023 or later year is inconsistent with the mark-to-market election, you must change your method of accounting for securities under Revenue Proce-dure 2023-24 (or its successor), available at IRS.gov/irb/2023-28_IRB#REV-PROC-2023-24. Revenue Procedure 2023-24 requires you to file Form 3115, Application for Change in Accounting Method. Follow its instructions. Enter “64” on line 1a of the Form 3115.
Once you make the election, it will apply to 2024 and all later tax years, unless you get permission from the IRS to revoke it. The effect of making the election is described under Mark-to-market election made (PUB 550), earlier.
If you want to revoke a prior mark-to-market election within the 5 taxable years ending with the year of change for the election, you must follow the non-automatic change procedures in Revenue Procedure 2015-13 and Revenue Procedure 2023-24, section 24.02(9).
For more information on this election, see Revenue Procedure 99-17, on page 52 of Internal Revenue Bulletin 1999-7 at IRS.gov/pub/irs-irbs/irb99-07.pd
A trader is not required to make the 475(f) election.
so if you qualify as a trader and did not make the MTM election by the original due date of your 2023 tax return, your next opportunity is with your timely file 2024 return or extension which would become effective for the tax year 2025 or later year if you so elect.
Since laws and rules change, I would advise consulting with a tax pro if you decide to make the election.