As a day trader, how can i excempt myself from wash- sale rules, & how can I elect mark to market w/ IRS?
Answer:
Yes, you can accomplish both (no wash sale and elect mark-to-market) by making a Section 475(f) election. The election can only be made if you qualify as a trader in securities (many firms use a threshold of a portfolio turnover rate of 4 times per year). For the election, see instructions to IRS Form 4797 at http://www.irs.gov/pub/irs-pdf/i4797.pdf.
The downside is that you lose capital gain treatment which probably won't matter much as long as you don't normally hold securities longer than one year.
Don't bother, day trading is stupid. If you like high risk and negative returns, at least have some fun losing your money and go to Vegas!
You must contact the IRS, as there are very strict guidelines to be a day trader. Must trade every day.
www.irs.gov is necessary to get approval 1 800 829 1040
when you are qualified then you can deduct many more expenses.
good luck
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