it's too late right.. what happens.. what do I do? also, is there any tax software that can do daytrading stuff?
i know of no software to help with those tedious tax forms though as i am sure it would have a market, there should be one. correct on being too late to make the election and if you are sure you want to do so for 2010, be sure to do it before April 15th, regardless of if you file for an extension. if you trade futures or live in some future reality where futures will be your new house and car, best to think long and hard about switching to mark to market as you lose the big tax benefit futures offer and it is apparently quite difficult to rescind the election once made so... this is a pretty good link with more info http://www.thestreet.com/story/716334/how-to-file-a-return-that-tells-the-irs-youre-a-trader.html
do i get to take all my losses next year, or do i have to take it 3000 a year until it's gone? I had negative income last year, does that affect anything?
If you made the election the year before - I am not sure that you need to make it again every year. You should check into that. The way the rule was written when I cared about it - it did not have to be done every year... by my read.
from my understanding via accountant, unfortunately, you don't get to use any excess beyond the $3000 next/this year and you will have to just write that annual $3000 off until the excess is gone. after you have declared mark-to-market, you have a lot more write offs, including any losses (which would be bittersweet because, of course, you want to be profitable this year). as it goes, the longer you are in the game, the more likely you will find something(s) that works. as Jem said, once you have made the election, you don't have to do it again and so i have heard, you will have to prove to THEM that you are not a trader to repeal the election. maybe we can get one of the ET accounting mavens to post? best of luck not needing the loss write offs this year