-254- APPENDIX B SEC. 475. MARK TO MARKET ACCOUNTING METHOD FOR DEALERS IN SECURITIES. (a) General Rule.--Notwithstanding any other provision of this subpart, the following rules shall apply to securities held by a dealer in securities: (1) Any security which is inventory in the hands of the dealer shall be included in inventory at its fair market value. (2) In the case of any security which is not inventory in the hands of the dealer and which is held at the close of any taxable year-- (A) the dealer shall recognize gain or loss as if such security were sold for its fair market value on the last business day of such taxable year, and (B) any gain or loss shall be taken into account for such taxable year. Proper adjustment shall be made in the amount of any gain or loss subsequently realized for gain or loss taken into account under the preceding sentence. The Secretary may provide by regulations for the application of this paragraph at times other than the times provided in this paragraph. (b) Exceptions.-- (1) In general.--Subsection (a) shall not apply to-- (A) any security held for investment, (B)(i) any security described in subsection (c)(2)(C) which is acquired (including originated) by the taxpayer in the ordinary course of a trade or business of thePage: Previous 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 Next
Last modified: May 25, 2011