Anyone know how losses on form 4797 are carried backwards or forwards to other year's "ordinary income" ? Have all my expenses on schedule C and my gains and losses on part 2 line 10 of form 4797, but my tax preparer doens't know how(or her software doesn't recognize) to incorporate and carry backwards on FORM 1040 2008's losses backwards to 2006 when I had other ordinary income to go against this loss and give me a refund by refiling my 2006 return. www.fairmark.com under "trader" says that a trader that has elected the Mark-to-market accounting method may carry losses backwards or forwards in the full amount against other earned ordinary income, but doesn't give the tax code or method supporting this notion. Does anyone know the IRS code delineating whether this is true and if trader losses can be carried to prior years where income was earned in other professions? Thanks in advance.