Thank you @BMK Mailing it in is not my 1st choice - but I just thought if I cant figure out how to attach this Form 4797 that is generated by Tradelog and also Form 3115 (For changing accounting to M2M), then I have no other option but to mail it in. If there is a way to attach it to TurboTax Business version as thats the only version that does S-Corp taxes - that will be great. If you have ideas of another tax software that is better for my situation - I am totally open to suggestions. Just because I have previously used TurboTax for my personal taxes, doesnt mean I have to stick with it. Once again - thank you for all your help.
But...Can you core a apple? Robert Morse said he could, AMP had not yet answered...I think Baron said he could...Running down the list in my head... Not many have been able to state with confidence that they can core a apple. This is important to know though. Hehe!
I have not done a return with a MTM election or Form 3115 in a while. I have reached out to some of my colleagues to try to get you an answer. Might take a couple days. It's not just about whether it can be done in TurboTax. It's whether those forms can be filed electronically at all. There are some forms that cannot be filed electronically--in any tax software--because the IRS e-file system simply does not support them. The list of forms that are not eligible for e-file changes a bit each year. I'll see what I can find out for you. BMK
There are three different things you have to do in your 1120S: Form 3115 Attach a statement making the mark-to-market election under Section 475(f) Attach a statement containing all of your trades, i.e., a spreadsheet converted to a PDF or a paper attachment If any one of these cannot be done with an electronically filed return, then you will have to file the return by mail. I can't tell you whether TurboTax can do all of them on an e-filed 1120S. But I can give you some guidance and point you in the right direction. Form 3115 can almost certainly be completed within the program. You will not have to fill out the form manually. Whether it can be filed electronically is a different matter. When you get to the point where your return is complete, TurboTax will tell you whether the return is eligible for electronic filing. If Form 3115 cannot be filed electronically, you may be able to file the return electronically and then mail in Form 3115 with Form 8453. If that option is available, the program will tell you, and it will print Form 8453 for you. Form 8453 can only be used for certain paper filings. You have to check a box indicating what you are mailing in, and Form 3115 is one of the choices. The mark-to-market election is a simple statement that has to be included with your tax return. Instructions for how to write it can be found in IRS Publication 550. You may have to reach out to the support team at TurboTax/Intuit to see if this can be done in the program. Here again, even if it can done in the software, it may not be eligible for e-filing. You may have to print the statement and file the entire return by mail. Form 8453 cannot be used for this purpose. If can't be done within the program, you can still complete your return using TurboTax, and write the statement yourself (using MSWord or whatever). But you'll have to file the entire return by mail. Try performing a search within the help screen in TurboTax for the phrase "mark-to-market" or the phrase "miscellaneous elections," and see what you get. The spreadsheet containing all your trades also needs to be attached. You enter the totals on line 10 of Form 4797, i.e., gross proceeds, cost basis, and net gain or loss. The instructions for Form 4797 specifically allow you to do this. On line 10, you enter "Trader--see attached," and then you enter the totals in each column. The question is whether the statement showing each transaction can be attached as a PDF and transmitted electronically with the return. Here again, you'll need to rely on the onscreen instructions in the program, or reach out to Intuit support. As you know, retail traders use Form 8949/Schedule D. But even retail traders who have have not made the MTM election and do not have trader tax status can easily have hundreds of transactions. The IRS explicitly allows retail traders to do the same thing: enter totals on Form 8949 and attach a spreadsheet statement. In most tax software programs, that statement can indeed be attached as a PDF, and the return can be filed electronically. We do this all the time for retail traders by simply attaching a PDF of Form 1099-B provided by the broker. For a retail trader, the Form 1099-B is the statement. But I am referring to a Form 1040 with a statement attached to support the totals on Form 8949. I don't know whether TurboTax will support such an attachment for a Form 4797 that is part of an 1120S. If there is no way to attach it, you will have to file the entire return by mail. If there is a way to attach it, there should be an option, within the program, on the screen for Form 4797, where it asks you whether you are entering each transaction one at a time or entering totals from a summary or an attachment. Hope this helps. BMK
Thats incorrect . I filed mtm for 15 straight years and every single yr i showed one single line Date bought 1-01-2020 Date sold 1-31-2020. Total cost $4,000,000 Total sale $4,350,000. Total profit $350,000 . Enter that on line 10 for your profit. Not one time did i ever send any trades in and i never got one letter from the IRS.
@SammyJ I recommend that you read the IRS instructions for Form 4797, line 10. Here's what it says: Securities or Commodities Held by a Trader Who Made a Mark-to-Market Election Report on line 10 all gains and losses from sales and dispositions of securities or commodities held in connection with your trading business, including gains and losses from marking to market securities and commodities held at the end of the tax year (see Traders Who Made a Mark-to-Market Election, earlier). Attach to your tax return a statement, using the same format as line 10, showing the details of each transaction. Separately show and identify securities or commodities held and marked to market at the end of the year. On line 10, enter “Trader—see attached” in column (a) and the totals from the statement in columns (d), (f), and (g). Also, see the instructions for line 1, earlier. I have attached the complete instruction booklet for you. The above referenced text can be found on page 8. BMK
Thank you @BMK. I sent in the M2M election statement for my LLC last year so set on that. I have to send in Form 3115 this year with my 2020 tax forms. I already have calculated my 481 adjustment - but just need to make sure I fill out Form 3115 correctly. I know the biggest part is 481 adjustment - but want to make sure I check all the boxes that need to be checked on that form OR write whatever I need to write on it. I have Form 4797 filled up with all the trades that are ready to be attached to the tax software if it lets me, or will get mailed in I guess if I cant attach. My understanding has been that all trades need to be listed as well, but I will give what @SammyJ is recommending. Only benefit of that is if I cant attach 4797, then I can just manually add one line in the tax software and not have to mail in the tax return because of physical 4797. There is no other benefit to not giving them a statement with all the trades. I have traded under my LLC as a partnership for few years and had a good handle on taxes. For 2020 I elected M2M and also elected for LLC to be taxed as SCorp - so adding all the complexity and various tax forms. On top of that various tax forms that I need to fill out for NY State SCorp. Thanks for all your help.
I don’t care what the IRS booklet says . I used Green trader and Robert Green the father of trader accounting for 7 yrs to do my taxes . The IRS could give 2 craps about seeing all your 500k of traders. They want to see the bottom line.