Trader and Accounting method MTM - using TurboTax Desktop 2024 Premier

[gl2024confused]

Thanks for answering my earlier question here. With the help there, I was able to elect MTM properly, manage records of trades, send the election with my 2023 tax returns etc. Now, unfortunately I missed buying the TurboTax Desktop 2024 Premier, which I was assuming supported the MTM election scenario. However, seems like that edition is considering all my gains/losses in 1099-B as ordinary income, but allowing me to take losses only for $3K. Questions given this situation:

1. Can I still use the Form 4797 to report the gains/losses and remove them from 1099-B?

2. Will the premier edition still be able to handle this without any issues? I am willing to do some manual work if I can still do it that way.

3. If answer is no to #2 above, is there a way, I can apply the cost of this to buy the Home or Business edition?

4. Do you have examples of tax form 4797 where positions held through 12/31 as marked as sold and shown as rebought in the Jan of next year? This would be tremendously helpful.

5. If I do chose to file an extension, can I still do all of this filing as usual by 10/15, including the form 4797 and form 3115 filing up and eFile as usual?

Please reply at the earliest. Appreciate the help!

[DawnC · Accepted solution]

You really only need the desktop software if you need to take a home office deduction - See this help article, and use the instructions for the MADE the ELECTION option.  That article has been updated since last year, so be sure to review it.  

#1 - Yes, your activity should be reported on Form 4797 if you have made the election.  

#2 - Yes - you can use Premier desktop to report your activity - and you can use Premier for the home office deduction (you can't do it with TurboTax Online, but any desktop product will work for you)

#3 - Desktop Premier is sufficient

#4 - I do not have examples, but I thought you mentioned you used Form 4797 last year - If so, you can refer to last year's return or search the Community.

#5 - Yes, you can file an extension now and file before 10/15.  E-filing for 2024 ends in Oct and Form 3115 can't be e-filed with TurboTax.  See Forms Availability

And there are no bots answering here in the Community (not yet anyway)    🙂  

[gl2024confused]

Thanks a bunch for the quick answers! Those are super helpful! At least from the speed perspective, I still think you are no less than a bot lol 🙂

[gl2024confused]

I came up with one follow up question:

If I file for an extension now, can I include the form 3115 when I am sending the extension request via mail and then later eFile the main tax returns before 10/15?

On a side note, this will be my first time filing 4797, so more homework for me 🙂

[KristinaK]

You cannot include Form 3115 with an extension (Form 4868). Hopefully, you e-filed your extension, too. 

Form 3115 needs to be included with your tax return. 

@gl2024confused