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Day Trading: Mark-to-Market 475(f) Election?

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Los Angeles, CA
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Day Trading: Mark-to-Market 475(f) Election?

These 2 questions are for US Citizens who day trade:
  1. How many of you who day trade have made the Mark-to-Market 475(f) Election?
  2. If you did make the Mark-to-Market election, did you also file Form 3115?

I was looking into buying a year's subscription of Trade Ideas Pro. However, after reviewing the IRS rules, I realized if I did buy the subscription, which is fairly pricey, I might be required to make the Mark-to-Market election. To qualify for the IRS election, the IRS requires that:
  1. Your activity must be substantial; and
  2. You must carry on the activity with continuity and regularity
I read that the IRS requires the number of trades per year must be at least 1,000 to 3,000 trades per year. This means, if I bought Trade Ideas Pro, I would be forced to make 1,000 to 3,000 trades per year.

My understanding is, if you make the Mark-to-Market election, you cannot claim the lower long-term capital gain rate for investments of over a year even if they are in a different brokerage account.

Last edited by techstocktrader; February 14th, 2018 at 11:40 PM.
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