I have read that if a trader gains Market to Market status, registers as a professional trader, that taxation is no longer capital gains/losses but is taxed as ordinary income. I don't have the references handy to give the exact quotes, but that was the jist of the read. My question pertains to existing capital losses (which I have plenty of unfortunately). If I remain as I am (not registered pro) I can offset all of my daytrading gains directly against those losses, and basically not pay any tax. If I do attain trader status and therefore get taxed as ordinary income on gains, would I then lose the ability to work against those losses, and therefore only be able to deduct the 3k/year figure?