In TurboTax Home & Biz desktop, how to handle 1099-B for the MTM account?

Forum|Forum|1 year ago
March 27, 2025
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I have a 1099-B for my MTM account.

I know there is no Schedule D and 8949 Forms for the MTM account.

I generated the data needed for the 4797 Form based on the original transaction history data.

Now it seems this MTM account's 1099-B is useless.

1. Should I still report this 1099-B?

2. If yes, how to do it in TurboTax desktop edition? I need to paper return some forms and reports for the MTM account. Is it necessary to report this 1099-B? There are more than a thousand pages.

TurboTax Home & Biz Windows

mglauner

If you qualify as a trader, you have two ways to report your income:

If you have not made a Section 475(f) Mark-to-Market (MTM) election, then your trades are reported on Schedule D and Form 8949.
If you have elected a Section 475(f) Mark-to-Market (MTM) election, then your trades are reported on Form 4797.

Without the election, gains and losses are recognized when the security is sold. They are treated and taxed as capital gains and losses and are subject to capital gains tax rates, as well as the limitation of losses and the wash sale rules.

With the election, gains and losses are based on the value of your holdings at year-end. It's treated and taxed as ordinary income. The limit on losses and the wash sale rules don't apply.

If you have made the election, here's How to Report Day Trader Activity.

@likesky1010