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

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