Trader tax status, foot notes

[ritz0786]

If someone is claiming active trader status (to claim business expenses), it helps to add foot notes to the return that explains that status is being claimed.

Does Turbo Tax have the ability to add free text / foot notes to the return.

I used a CPA earlier and he was able to put these foot notes earlier (using his professional tax prep software). 

But not sure if Turbo tax can do so. I would like to do my own taxes with turbo tax so need to ensure I can add the foot notes for this status. will be using premier version

[Anonymous_]

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@ritz0786 wrote:

Does Turbo Tax have the ability to add free text / foot notes to the return.

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It does not have that capability. The only way to add footnotes with this program would be to save the return as a PDF and add the footnotes in a PDF editing program (if you have one available to you). Of course, that would involved mailing the return; you would obviously not be able to e-file.

[ritz0786]

Thank you, few more Q.

1. Will turbo tax help to file for section 475 (f) (mark to market) election? I believe I should quality for trader tax status, and I want to file this election for year 2020 to convert capital losses into ordinary losses (which i believe is available to trader tax status).

(I know the usual deadline is april 15, 2020, but due to corona virus, they have extended deadlines for making all elections to july 15). Will be filing this along with the return for year 2019.

2. If TT can help file filing 475, can that be e-filed with the return, or it needs to go as paper?

3. Also, at what point I need to file form 3115 (which is required with section 475) ? Do I file this also now along with filing 475 (with tax filing for year 2019)? or later (when?)

Does TT help with filing (preferably e-filing) form 3115 also?

Thanks!

[Anonymous_]

The short answers to your questions are simply that you really need to seek professional guidance and, most likely, need professional income tax preparation.

TurboTax does not support the MTM election in any online version. Even with the desktop versions, you are essentially stuck preparing a statement in Forms Mode and then printing and mailing your entire return.

With respect to Form 3115, that is not typically a DIY project; again you should seek professional guidance. However, the form is included with TurboTax but must be prepared entirely in Forms Mode (further, in some instances, Form 3115 must be filed in duplicate, one copy is filed with the return and a copy is mailed to another IRS office).