1. You don't have to get approval. You do have to make the election a year before you start the MTM on your tax return. You make the election by filing a statement with your tax return filed BEFORE THE DEADLINE (extensions don't count). The statement must include that you are making the election under section 475(f), that it will be effective for the next year (or the year after that if you didn't make the April 15 cutoff) and the name of the person or the name of the business for which the election is being made.
2. You just have to attach that statement to your timely filed tax return.
3. The IRS rules on this are kind of vague but these are the specifics - you have to be doing it as a for-profit activity, the activity has to be substantial (i.e. a full time job) and it has to be carried on regularly and continuously. It sounds like you're definitely doing it to try to make money and doing it on a regular basis. Only you can answer whether it represents a substantial investment of your time. If you are putting in a lot more time at your full time jib I wouldn't do this.
The mark to market election does allow you to deduct all of your losses in a year where you have them - you aren't limited to $3,000 like the rest of us - but it also makes all of your income regular income. Essentially all transactions become short-term. And you get to deduct all of your investment business expenses. It will involve a lot more organization on your end as well as notifying the brokers that you work with so that they can reflect the election on your 1099-B.
@4ever1505
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