Filling up form 3115... first time applying to change accounting method to MTM

[mdeodhar]

Hi

I am filling up the form 3115 for the first time (for the year 2022) to change my accounting method to Mark to Market. Are there any guidelines on this form specifically with reference to MTM accounting? Some of the questions are bit tough to understand and I want to make sure I am doing everything right. I tried to get advise from TT live support but want to hear from members who have done this for their own MTM filing.

Is it correct that this form needs to be filed only once, for the first year of changing the accounting method? 

Thanks     

[ThomasM125]

You first have to be a trader as opposed to being an investor to make the mark to market election. Being a trader has many qualifications, but the basic test is how much time and effort you spend managing your investments.  You make the election  by attaching a notice of your mark to market election to your tax return for the first year you want to have it effective. It will remain in effect until your take steps to revoke the election. You must file Form 3115 Application for Change in Accounting Method in the year you make the election. You can learn more from this article from the IRS:  Mark to market election - IRS