Question

475 MTM elected trader 1099 misc wash sales

Forum|Forum|2 years ago
March 27, 2024
1 reply
0 views

I qualify and elected for 475 MTM 2 years ago and changed my accounting when i filed my taxes in 2023. My question is, I called Fidelity my broker and although I submitted a wash sales suppression form because I am MTM, they keep showing wash sales in my 1099 misc. When I called them, they said they're not supposed to suppress wash sales from short sales.

Is this true? I thought MTM meant that "traders who make the Sec. 475(f) election are deemed to have sold all their stocks and securities for their FMV on the last business day of the tax year. In other words, every position in the trader’s trading account is marked to market and is deemed to be sold at that price at the end of each year. As a result, traders must recognize all gains and losses on the constructive sales as of that date."

does this not account for short sales?

Not A Product Question

fanfare

where is the fidelity form for "suppression of wash sales"

I'd like to see what it says. I have a fidelity account.

-

Are you saying tha only wash sales listed are related in some way to a short sale?

@olio1987

O

olio1987Author

the form you can't find online, they have to email it to you. It is 1 page long, i put my name, my social, my fidelity account # and sign. The name of the form is called Mark-to-Market Accounting and wash sales suppression. here's the only fine print of the form attached

I submitted for this last year July 2023, and when i received my 1099, it had wash sales, when I called they said "you're right, they should be suppressed, let me send this to our tax team"... weeks later the tax team said "it's correct, those are just suppression of the short sales". I called back saying that makes no sense, by law when i filed for 475 MTM and qualified, it's supposed to only show my net gains or net loses for the year and all sales are to be considered as closed as of end of each day. No wash sale rule applied.... they called back and said, "nope, the forms are correct"... but my tax CPA team say No, the forms are wrong... so i don't know who is right.