I've stock transactions that I need to import into Federal Form 4797 (not Form 8949 where they normally go). Is there a way to do that in TurboTax?

[fanfare]

you cannot file under section 475f this year if you did not make the election by the due date of your 2017 tax return.
you can make the election for 2019 filing by attaching the election to your 2018 return, or to form 4868 request for extension of time.

[sonnycvng]

Thank you.  I filed MTM more than 3 years ago but I had to do the return manually (instead of e-file) and I was wondering if I was doing it incorrectly.  I would’ve thought that Turbo Tax can make it easier for us if they allow us to select where we want to import.  

[fanfare]

see here for how to fill out form 4797 in TurboTax and e-File.
[link no longer available]

[Critter]

Sorry but for the handful of you who actually make this election the program is not going to include things that could potentially confuse the masses who did not make this election .... remember the TT program is a DIY situation that is aimed at the uneducated in the tax world (ie  grade school level)  and you are asking for a grad school level entry.

[Derek_H]

Hi - thank you for participating in this forum!  Do you know how to access the MTM accounting method in the desktop software?   I made the election for the 2018 tax year outside of TurboTax but would like to return to TurboTax this year.  Thank you for your help!

[tagteam]

@Derek_H See https://ttlc.intuit.com/community/taxes/discussion/re-turbotax-can-certainly-handle-the-type-of-retu...

[e-shippee]

Sorry, I am coming to this later (Dec 2020).

I changed from "investor" to "tax trader" last year (2019).

In March of 2019 I sent letter to IRS changing accounting method/reporting.

I also filed Form 3115 with 2019 return.

Given my reading of IRS pub instructions for Form 4797 as found at URL:  https://www.irs.gov/instructions/i4797

which states in pertinent part: "Report on line 10 all gains and losses from sales and dispositions of securities or commodities held in connection with your trading business, including gains and losses from marking to market securities and commodities held at the end of the tax year (see Traders Who Made a Mark-To-Market Election, earlier). Attach to your tax return a statement, using the same format as line 10, showing the details of each transaction. Separately show and identify securities or commodities held and marked to market at the end of the year."

It is my intention to file regular return electronically, with summary line on form 4797 part II, and follow it up with an amended 'paper' return to add the 20 additional pages of detailed transactions as set forth in the aforementioned set of instructions. 

[rdrapkin]

Did this work?

[eshippee]

This worked for me, but please note that I submitted the required "election" statement with my 2019 return via certified mail, and sent in the Form 3115 with the 2020 tax return this year, with all trades delineated on IRS Form 4797 and 20 plus pages of supplemental trades (one line for each transaction) which I kept in a spreadsheet.

[rdrapkin]

I sent my election form separate from the return (but before deadline), so hopefully it's all good.

[Buybuy]

Did you still have to efile 8949 or were you able to skip that entirely and just declare all individual transactions in 4797?

[fanfare]

First, to get a proper form 4797 for MTM, you have to use the CD/download version of TurboTax.

If you want to use TurboTax to generate your Form 8949 transaction details, you do that in a preliminary tax return , print it and then put that tax return file aside under a suitable name.

You may have difficulty choosing Box A due to the way TurboTax handles Box A in recent versions.

In your actual return you will file Schedule C not D

and this will  put your trade income on Schedule 1 line 3 where it belongs.

[dima7]

I filed join return last year with my wife.  Wife made a valid mark-to-market election under section 475(f) with that return but didn't trade much through the year to really qualify her under qualification rules. 

I traded some stocks and crypto as well last year.  Neither of her or my trading accounts had both of our names as owners (all individually owned).  

Can my trades be added to hers to qualify her under 475 section? 

Thanks!

[GeorgeM777]

No, because the Section 475 election is unique to the taxpayer, and as you noted in your post, your accounts were not joint accounts but rather accounts held in your individual names.  Given the number of trades that were effected, you might want to reconsider whether to use the mark-to-market rules as provided under Section 475, and perhaps you already have decided against using such rules.  Section 475 is only available for eligible traders.

@dima7

[dima7]

Thanks for confirmation.  We will add both names to our accounts this year and revisit MTM status next year if we feel we will trade actively.