As a convenience to customers, we offer generation of Form 4797 in our application.
This option only applies to "Traders in Securities" who make an election under section 475(f) to use the "mark-to-market" method of accounting. See www.irs.gov/taxtopics/tc429.html for more information.
For traders who make a mark-to-market election, our program will convert your spreadsheet to IRS Form 4797 (plus attached statement) as a PDF file.
The app requires that your spreadsheet contains mark-to-market accounting data.
Under the mark-to-market method of accounting:
- Gains and losses from sales of securities are treated as ordinary gains and losses and are reported on Part II of Form 4797, Sales of Business Property.
- The limitations on capital losses do not apply.
- The wash sale rules do not apply.
- At the end of the year you must mark your securities to market, that is you treat any securities held at the end of the year as if you had sold them on that day for the current market value.
The app will generate Form 4797 and supporting statements. But it does not do "mark-to-market" accounting for you.
- Your input file (e.g. spreadsheet) must already reflect mark-to-market accounting.
- The app does not modify your inputs to undo wash sale adjustments.
If you have multiple accounts, the transactions will be combined and reported on one Form 4797.