Form 4797 errors. Form 4797 is for ... Active traders qualifying for trader tax status may elect Section 475 MTM ordinary gain or loss treatment on securities only or futures, too.

Form 4797 Part II has business ordinary loss treatment and avoids the capital loss limitation and wash-sale loss adjustments. Form 4797 losses are included in net operating loss (NOL) calculations.

Please see the instructions for schedule D and form 4797 for the correct treatment and proper reporting by traders. Expenses of traders always go on schedule C. Gain or loss from securities never does ...