OK...so here are a few things I've gathered thus far....if someone can please verify these things for me...I'd really appreciate it.... 1. As a trader w/o M2M election, all my gains will be considered a capital gains and should be reported on Schedule D at a rate of 28% 2. All my trading expenses should be reported on Schedule C (Profit or loss from business (sole proprietorship) instead of Sched. A "itemized deductions") 3. Since I haven't elected M2M the previous tax year, I am subject to the "wash-rule" which doesn't allow me to deduct my loss for a losing trade, unless I don't touch that same security for 31 calander days. If I do decide to trade that security again within the 31 days, the loss from the previous trade will carry over to the price that I enter the "new" trade. This will continually carry over until I make a trade, of said security, that is net positive or when the 31 days pass. 4. I should use a program such as "Trade Log" to help account for wash sales. 5. Since I don't have M2M status, the total capital gains loss I can claim is $3000. How'd I do? Any and all help will be most appreciated. Thanks in advance!!