Randall Posted March 26, 2021 Report Posted March 26, 2021 Does a person have to make an election in the prior year (by April 15) to claim trader status and allow the wash losses? It seems the instructions to make this election has to do with mark-to-market, claiming the gains & losses as ordinary. Can one just claim to be a trader and put these on Sch D as capital losses? Client had about $10k in the account, 1099B proceeds total 35 million. Disallowed losses show him with a gain of $28k. Quote
Lion EA Posted March 26, 2021 Report Posted March 26, 2021 Yes to prior year. And, to mark-to-market. I don't have any trader clients, so can't think through how that flows on a trader's return right now. Someone will jump in to help you with planning for next year. I think you're right about wash sales not applying if you elect to use mark-to-market. https://www.irs.gov/taxtopics/tc429 Quote
Lion EA Posted March 26, 2021 Report Posted March 26, 2021 I think you're right about wash sales not applying if you elect to use mark-to-market. https://www.irs.gov/taxtopics/tc429 Quote
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