Please help me with filing Mark-to-market election section 475f. If I now just register for MTM election in 2024 does that mean that next year 2025 it would be effective?

[Tran2]

If I now just register for MTM election in 2024 does that mean that next year 2025 it would be effective for my 2024 return? I trade option regularly and I am in Cash account so I think it is automatically use mark to market accounting method in my brokerage, Robinhood.

[KrisD15]

Yes, it means when you file for Tax Year 2024 (in 2025) it will be effective (if 2024 was the year you specified when you made the election).

Mark to Market election involves more than Cash Accounting and frequent trading as you will no longer file Schedule D and have Capital Gain or loss for the Mark to Market trades, rather only Form 4797 and Ordinary Income. 

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