Bank One Corporation - Page 180

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                                     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 the                                





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Last modified: May 25, 2011