OptionsTaxGuy

How much in Net Capital Loss carryforward ("NCLcf") should you have before electing Mark to Market ("MTM")? That is a difficult question to answer quantitatively. Once the MTM election has been made, the NCLcf is frozen for offsetting any MTM gains since the NCLcf is by definition a capital loss and MTM gains are ordinary income. The NCLcf can offset capital gains if you have setup two accounts, one for trading - the MTM account - and another for other investments. The detai

If you have substantial long-term capital gains ("LTCG") in one or several stocks and you are considering the Mark to Market election, you should consider these options. If you have stock from a previous employer, or gifted to you by a grandparent, or you have simply held for a number of years for various reasons, and that stock has a substantial gain, if you make the MTM election and include that in your MTM trading account, that long-term gain will be taxed at ordinary inco