OptionsTaxGuy

The use of Exchange Traded Funds ("ETFs") that make non-dividend distributions ("NDDs") inside a mark to market ("MTM") account somewhat runs contrary to the purpose of a Trader in Securities ("TIS"). It is an arguable position, but the purpose of NDDs, especially ones that focus on a covered call strategy within the ETF, is more suited to investments to generate income and retirement accounts rather than capturing profit in response to short-term movements in the market. Dis

Those who have both investment accounts and trade as a Trader in Securities with a mark to market election realized the tax characteristics of both types of accounts are significantly different and may want to take advantage of those characteristics by transferring securities between the two accounts in order to take advantage of those characteristics. Some possible reasons to transfer securities between investment and MTM accounts: Unrealized loss exceeding the $3,000 limita