60/40 on commods and MTM on stock

Discussion in 'Professional Trading' started by stock777, Jul 21, 2003.

  1. Is anyone reporting thier STOCK trades mark to market and still reporting their commodity trades with the 60/40 tax break?

    Many sources say you can't do it, but I'm not so sure.
  2. dawg


    when i last spoke to my accountant...you cannot do both.
  3. Here's the thing. There are two distinct elections, 475f(1) Stocks, 475f(2), Commodities. In theory, anyhow, you can elect for Stocks only.

    Can we hear from someone that can shed light on this?
  4. Ebo


    Explain to the IRS that you are a full time trader only for stocks.
    oh....but not a full time trader for futures.
    According to my CPA, you have to elect MTM for all or none.
    The only way around this is to create seperate entities for each.
    Create an LLC for futures trading and trade as MTM individual for stocks. Mixing and matching your status under the same entity is an IRS red flag. What does GREEN and Co say about this?
  5. sprstpd


    This is correct. You would have two businesses I believe. One in securities trading. One in commodities trading. The elections are distinct.
  6. sprstpd


    You have to be a full time trader to elect MTM. But if you are a full time trader you don't have to elect MTM. You can elect it for securities trading and not elect it for commodities trading.
  7. sprstpd


    As a followup, when I made my MTM election for securities trading, I specifically referenced 475f(1). No mention of 475f(2). Therefore, I have not changed the accounting method for commodities trading.