3115 day trader

[HOPE2]

Hi to all. My client called me that I am trading all the 2023 year. I checked his trading with requirement.

I have no debate for this part.

I told him why did not tell me since I had to file 3115 with 2022 tax return. So I searched and did not find a way how to file a late 3115 Just relief 9100 that it was complicate. I also have question regarding next year. I see in addition 3115 should attach a Statement that I would like to know what should be in there, is it handy? And can e-file Statement as PDF and 3115 both?

In Proseries we have form 3115 and Mark-to mark election which landed on 4797 automatically. 

However, expenses related to trader inters on Sch C, it makes negative net income so what is the reason we should consider exemption of SE tax while it is a loss on Sch C? Even the client has a another Sch C with a net income, SE tax will be combined. I think I did not get this part correctly could please navigate me what we do exactly for SE tax?

I would greatly appreciated it!

[Terry53029]

Not sure what you are asking about the SE tax, but As a trader, you must make the mark-to-market election by the original due date (not including extensions) of the tax return for the year prior to the year for which you intend the election to become effective. See link.

https://www.irs.gov/taxtopics/tc429

[HOPE2]

Thanks but for this part I did not have any question, right? 

Dear folks I need really help for this problem, how to file late 3115? Dose everyone have exeriance regarding relief 9100?

Regarding a Statement which should be along 3115, is this just a A-4 paper includes:  1. making an election under....

2. The first year for which the election....

3. The trade or business ..... That's it?

Can we E-file both on Proseries?

Why we need to have SE exemption for expenses, while just expenses should enter on Sch C?

What is the most deferent between Automatic Change Request and Non-Automatic Change Request?

Thanks for your help.

[jeffmcpa2010]

When I have clients who have something "out of the blue" that is outside my scope of knowledge and experience, and also appears to be a complicated issue, I generally inform them that I don't have the capability to properly deal with their specific tax issues, and that they will need to find a new preparer who is competent in those issues.

Saves me a lot of sleep and worry.

Best wishes on figuring out the answer to your Clients problem.

[IRonMaN]

But some folks would have an awfully small client base if they did silly stuff like referring clients elsewhere when they were dealing with stuff they know nothing about 😜

[Terry53029]

You might try the IRS instructions which in part says "In general, a filer that fails to timely file a Form 3115 will not be granted an extension of time to file except in unusual and compelling circumstances. See section 6.03(4)(b) of Rev. Proc. 2015-13 and Regulations section 301.9100-3 for the standards that must be met. For information on the period of limitations, see section 5.03(2) of Rev. Proc. 2023-1." Here is the link. https://www.irs.gov/instructions/i3115

Here is a link for info on 9100. https://www.journalofaccountancy.com/news/2009/feb/requesting9100relief.html

[HOPE2]

I think you remember me my old school friend  who does not like to grow up his knowledge and every year he tell me: last year I had 100 clients this year I have 85 ...... can you imagine what happen for next year...............

So, every day non stop am researching and every subject is important to me since it is money, and money is honey. Almost 12 hours in a day no watching TV FOOTBALL. If I want to tell my client go to other place it means 10 clients you lose them. Sorry for my explanation.

[HOPE2]

Thanks I found relief 9100 from the link you provided already but very hard to wrap up.

[Terry53029]

Doing a disservice to your client is not a good way to grow your practice. Day trading is a very unique business IE. SE tax or no SE tax lots of differing opinions, even different court cases don't agree. You may be better off by calling a few CPA's in your area that may be able to work with you. Just my views

[HOPE2]

If you have filed for Day Trader let me know should line 13 , PART II be marked as YES? if YES, how about Sch A in part l , for day trader what kind of methos is Present method? what is Proposed method?

And line 5 on part l on Sch A ... Yes or No ? Any help would be appreciated,

Thanks

[HOPE2]

Thanks again, when the reuslt of 4797 goes on Sch 1 line 4, my question is regarding expenses that we should file Sch C for expenses. Assume client has ordinary income because of gain so should file Sch c for gain then SE tax exemption for this positive number if so we made double income; one in Sch 1 and one in SchC. I confused for this part.

Any help would be much appreciated!