- 11 -
States, 220 Ct. Cl. 197, 597 F.2d 760 (1979); Fuld v.
Commissioner, 139 F.2d 465 (2d Cir. 1943), affg. 44 B.T.A. 1268
(1941). Conversely, where, as in this case, (1) the taxpayer’s
daily trading activities covered only a portion of a single
taxable year, and (2) securities trading was not the sole or even
primary activity in which the taxpayer engaged for the production
of income, trader status was denied. See Paoli v. Commissioner,
T.C. Memo. 1991-351. Daily trading in securities for only a
quarter of a single taxable year is reasonably characterized as
“sporadic” rather than “frequent, regular, and continuous”, and,
therefore, insufficient to achieve trader status. Boatner v.
Commissioner, supra; see also Commissioner v. Groetzinger, supra.
C. Conclusion
Petitioner failed to qualify as a trader in securities
during 1999.
IV. Effect of Petitioner’s Purported Retroactive Election of the
Mark-to-Market Method of Accounting Under Section 475(f)
Because we find that petitioner was not a trader in
securities during 1999, a mark-to-market election under section
475(f) is not available to petitioner for that year. Sec.
475(f)(1). Therefore, we do not address petitioner’s argument
that he was improperly denied the right to make such an election.
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