i trade only futures, and 2007 was my first full year i elected 475ii with form 3115 last april for mark to market election and trader tax status knowing that i would probably have losses my first few years. after 1 year i have losses totaling 23,000.00 (not good, but not that bad overall) Again, i thought this would be part of the process... and im prepared to take losses for a few years. my tax question is.... i take my 1099-B that my broker sent me and... fill out form 6781 and then transfer those numbers to line 10 on part II form 4797? is this correct? i've read that with trading futures only, i dont need to provide any individual trade logs... but since i;'ve elected MTM i will lose the 60/40 futures tax advantage. i file jointly with my wife (who make a good salary & is understanding so far ) and i would like to at least offset some of her income. any help would be greatly appreciated.