Trader Status account or MTM account.

[nvrreddy]

IRS topic No. 428 (https://www.irs.gov/taxtopics/tc429) states

“A trader must keep detailed records to distinguish the securities held for investment from the securities in the trading business. The securities held for investment must be identified as such in the trader's records on the day he or she acquires them (for example, by holding them in a separate brokerage account).”

I have only one account. Some of the stocks are hold  any where from 2 weeks to year and some time more . Some are exclusively for day trading for a day or two. Basically its an investment account and trading account.

Does my account satisfy the IRS requirement for MTM trader status. Or, should I have to open a separate brokerage account exclusively for day trading account as a trader. Another for investment account.

The reason I hold all in one account is that I get large margin amount if on occasion I need one.

nvrreddy

[MinhT1]

If you are a trader and wish to use the mark-to-market election, you should have a trading account which is marked-to-market and another investment account for your investment activities. This is the best way to distinguish your trading activities from your investment activities.

The IRS says: 

The securities held for investment must be identified as such in the trader's records on the day he or she acquires them (for example, by holding them in a separate brokerage account).

[Mike9241]

separate accounts are best.  you have not told us what you do to identify to the broker that security X is for investment purposes so it doesn't get marked-to-market at year-end and thus included in your trading activity.

[nvrreddy]

Let me try understand this clearly.

Should I  inform the broker that I am a trader, and has MTM status for tax purposes. So a broker is required to mark to market all my trades?

nvrreddy