I have a client that is an initial year 1065 filer and wants to do a Trader Status election to treat stock sales as ordinary income (which I believe they do qualify to do). I've not done one of these before but from what I've read, you need to do a 475 mark to market election. Has anybody done one of these elections, and what's the mechanics behind it? There's not a lot out there on these and I didn't see there was a form to make that election, so just curious how that election is made. Do you make a memo and send it with your return? I usually e-file so I'm guessing I'd have to paper file if that's the case. Any insight for those with experience there is appreciated.
Thanks!
Thanks!
