Steps to file section 475 MTM

Discussion in 'Taxes and Accounting' started by FB2020, May 7, 2020.

  1. FB2020


    I need to do section 475 for 2020 (have losses for 2020).
    Per Green trader's website, the deadline for applying for sect 475 has also been extended to july 15th.
    Does someone has the language for sole prop using TTS? no LLC/entity.
    Also, I need to elect this for both securities and section 1256 contracts.(because lot of losses on 1256, so need to use them as ordinary)

    could someone help with the exact steps to follow for this? Am I correct in these?

    1. file 2019 taxes now (by july 15th, 2020). It will be filed as paper (no e-file), and attach a paper statement electing 475 for year 2020. (does 3115 go now?).
    Could someone put in exact wording for this?

    2. Come april 2021, prepare 2020 taxes using MTM.
    - Prepare Form 3115
    - prep Form 4797
    - prep form 481
    these 3 forms (in paper form) go along with the tax return, correct?

    Also, I heard a copy of form 3115 also needs to be sent to IRS in Washington. Where to send that? and when does that have to be sent? at the same time as filing 2020 return?

    Do I need to wait for form 3115 to be "accepted"? Or you send 3115 along with tax return and that's it.

    I have been using TTS status since 2016, but will be electing 475 first time now for tax year 2020. and have lot of 2020 losses.

    I was NOT a 475 in 2019 or prior. 2020 is the first year I am selecting 475.
    Can I still carryback NOL losses to prior years (2019 and prior), even though I was not a 475 in 2019/prior years? CARES act allows 5 year carryback of NOL that I would like to use.

    I am in NJ, if that matters.

  2. FB2020


    Any one please??