Registered: Feb 2004
09-25-05 07:59 PM
Quote from Mark2m:Yes , I have mark to market. I have a seperate acct dedicated to this business. The reason's are as follows:
1) This was set up prior to trading futures. With stocks/mark to market, I am able to trade without worry of wash sales rules.
2) All of my expenses, seminars, trading, (between software for platform, scanning, charts, data stream) you are looking at over $250 per month, not including cable (broad band) and other computer related expenses can be expensed on Schedule C. Also included are any margin expenses, note: instead of having it on Schedule A as a % of AGI.
3) Although I submit an itemized listing of my trades, my gains which are income instead of capital gains go on the 4797 form (in essence, Bought/Sold/loss or gain in total.
Once I make enough $$ on 1256 contracts, than I will have a seperate account that will allow me to work around the mark to market declaration.
Off course the Ira and UGMA situation is different, and I have no idea what to do. There are only a few CPA's that are even aware of the nuances of trader, and mark to market status.
Mark2m, I believe that you have mentioned several misconceptions of the Commodities Sec 475 M2M election: how to make it, when to make it, what it is required for. It sounds like you have confused the §475(f)(1) election with the §475(f)(2) election, perhaps? Also you may have confused trader status with the §§475(f) elections ... and Sec 1256 reporting with other capital gain property reporting.
While it would be too much to discuss in any more detail here, it might be advisable to double check with your tax advisor what has been done, and then file amended tax returns, if appropriate.