More and more frequently, we get consultation calls from potential clients that are so confused. Three constant misunderstandings are:

• Trader tax status vs mark to market election. TTS doesn’t solve wash sales.
• Form 3115 vs 475 election. 3115 is after the change to MTM, 475 must be filed before.
• Wash sales can be recovered next year. True, but 1099Bs inflate cost, so you do have a penalty this year.

AI can give you some information, but a trader tax specialist will always be able to customize their recommendations to your specific situation.