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I've been a swing trader for a few years and I'm considering switching to mark-to-market tax status - wash sales have been killing me. I think I understand the ramifications pretty well except if anyone knows an answer to the following I'd appreciate it:

1) I know that a trade of a like security in a tax advantaged retirement account within 30 days of a losing trade in a taxable account may require that I pay taxes on gains in the tax-advantaged account & possibly interest & penalties. Is this still true if I make the MTM election?

Your understanding is wrong about what the wash sale rule does. It doesn't make anything taxable in a tax-deferred account. What is does is disallow (defer) the loss in the taxable account, and it's deferred because you adjust the basis in the reacquired (wash purchase) securities. But if those are in an IRA or other tax-deferred account, the basis doesn't matter.

2) Do my accumulated short-term capital loss carryovers from previous years disappear when I switch from Schedule D to MTM? If not how do I include them in post-MTM return(s)?

No, they don't disappear, but they're still capital loss carryovers. They don't become Schedule C items, or NOL carryovers.

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