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

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I believe that in order to qualify for the mark to market election you must qualify as a business trader. That means you need to show the IRS that trading is a business and not an investment. Number of trades is one thing they look at, but also the number of days you trade, and the amount of time you spend in the business. I understand that if you have a full time job, while it's not impossible to get trader status, it does get considerably more difficult.

Trader status by itself gives many advantages including deduction of trading expenses, home office expense, pension plans etc etc. The big thing Mark-to-Market gives you, is the ability to take losses as ordinary losses, which are not subject to the capital loss limitation.

I do have trader status. I do not make the mark to market election.

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