how to add new day trader (MTM) to TurboTax?

[likesky1010]

I have been using TurboTax to handle my self-employed small business tax return for 10 years. I need to add a day trader (MTM) to my tax return this year. Section 475 election has been done with my 2023 tax return. My trading account was marked as an MTM account. Form 3115 is almost ready and will be filed soon before I file my 2024 tax return. I have done (data input) my existing small business tax return with TurboTax. How can I add the day trader (MTM) to the TurboTax? or How can I bring up the 4797 Form from the TurboTax?

[MarilynG1]

If you can download your 1099-B as a PDF, you can then Enter a Summary in Lieu of Individual Transactions.  The IRS has copies your 1099's if they have issues with any certain transactions.

If you're using TurboTax Online, you can attach a copy of your PDF to your return.

You can add a second business in TurboTax and have two Schedule C's in your return.  In the Business section, on the business summary page, choose 'add another business' or 'add another line of work', depending on whether you're using TurboTax Desktop or TurboTax Online. 

Here's more info on How to Report Day Trader Activity.

@likesky1010 

[likesky1010]

@MarilynG1 Thank you for your useful information. I added the new Securities Trading business. The Schedule C is created. I entered the 4797 from.  The gains/losses are taxed. I went to see Schedule C. There are no numbers there.  I thought I should input income here in the Business Income screen. But I found this gains/losses will be taxed again. I am confused now. There is no connection between the 4797 form and the related Schedule C form? TurboTax cannot populate Schedule C with the 4797 data automatically?

[DawnC]

Only your expenses go on Schedule C.   The income remains on Form 4797.   See How to Report Trading Activity - 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. 

Regardless of which you choose, the IRS recognizes you as a business.   Therefore you report expenses on Schedule C.  Commissions and fees paid to acquire the security aren't an expense, but are used to calculate the gain or loss of that security.

The profit or loss stays on the form appropriate to the method you used (Schedule D & Form 8949 or Form 4794) and doesn't get carried to Schedule C.