How do I make a mark-to-market election?

If you qualify as a trader in securities and want to make a mark-to-market election under section 475(f), then you should prepare a statement with the following information:

1. That you're making an election under section 475(f)
2. The first tax year for which the election is effective (that is, the tax year for which a timely election is being made); and
3. The trade or business for which you're making an election.

You will need to choose to mail your tax returns in the year that you make a mark-to-market election so you can include this statement with your federal tax return.

Please note that 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. This means that if you make the election by April 15, 2026 you will need to use the mark-to-market method on your 2026 and future tax returns.

For further information, please see this IRS article .

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