Reporting daytrader trades

[thomtax]

I know thaqt I read, earlier in the year, that besides the two methods of reporting a large number of transactions -
1 List all transactions on 8949
2 List totals on 8949 and mail copies of brokerage statements, if they meet guidelines, to the IRS

However, now that I need it, I cannot find info on this third method. I believe in it I did not have to mail copies of brokerage statements.

Can anyone shed any light on this, or am I just remembering incorrectly?

Thanks

[Lion]

Really two more. You can attach the statements as a .pdf to the efile instead of mailing. (Well, three, you can import an Excel spreadsheet into 8949.) Or, if all covered transactions (the IRS already has the info) and you are not making any adjustments, you put totals on lines 1a and 8a. Or any combination of those plus what you mentioned that meets the requirements of the data you are reporting.

By the way, if your client is really a trader instead of an investor, don't you report his trades on 4797 and his expenses on C?

[mastertaxguy]

Really two more. You can attach the statements as a .pdf to the efile instead of mailing. (Well, three, you can import an Excel spreadsheet into 8949.) Or, if all covered transactions (the IRS already has the info) and you are not making any adjustments, you put totals on lines 1a and 8a. Or any combination of those plus what you mentioned that meets the requirements of the data you are reporting.

By the way, if your client is really a trader instead of an investor, don't you report his trades on 4797 and his expenses on C?

Mark to Market election?

If so, doesn't that have to be made a tax year in advance.

[thomtax]

Thanks for the replies.

Yes there is the option to go to "mark to market" and file on schedule C. However, to do that, there is a change in accounting form that must be filed by April 15 of the year preceeding, in order to do so. So to use it for the year of 2013, it would need to be elected by April 15, 2013, and if I remember correctly. approved by the IRS. We have discussed it and he decided to think about it this year. With his situation, we have been unable to determine that it would be a big benefit to him. This may change as the year goes on. Either way, he has big losses.

Thanks again for the info.
LT