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Returning Member
posted Apr 8, 2022 4:49:09 PM

I need to make the 475 (f) election for MTM as a trader? The TurboTax eFile did not allow me to file the election with the eFile. What do I need to do?

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1 Replies
Level 15
Apr 8, 2022 5:25:50 PM

mail your return with the MTM election. there is no way to e-file.

 

A trader must make the mark-to-market election by the original due date (4/18/2022) (not including extensions) of the tax return for the year prior to the year for which the election becomes effective. You can make the election by attaching a statement either to your income tax return if filed without an extension or to a request for an extension of time to file your return. The statement should include the following information:

That you're making an election under section 475(f);
The first tax year for which the election is effective (that is, the tax year for which a timely election is being made (this would likely be 2022. an election to be effective for the 2021 return had to be timely filed with your 2020 return); and
The trade or business for which you're making the election.
Refer to the Instructions for Schedule D (Form 1040 or 1040-SR), Capital Gains and Losses PDF for more information on how to make the mark-to-market election. It's important to note that in general, late section 475(f) elections aren't allowed.

After making the election to change to the mark-to-market method of accounting, you must change your method of accounting for securities under Revenue Procedure 2019-43.  Section 24.01. In addition to making the election, you'll also be required to file a Form 3115, Application for Change in Accounting Method. Publication 550 describes the procedures for making an election under the section called "Special Rules for Traders in Securities." Non-filing of the Form 3115 mentioned above won't invalidate a timely and valid election.