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Mr. Pearce did not advise petitioner of the availability of a
section 475(f) election.
On or about June 4, 2000, Dr. James G. Sullivan (Dr.
Sullivan), a friend of petitioner, visited petitioner at his
home. Dr. Sullivan had helped petitioner set up the computers
that petitioner used to conduct his securities trading business.
During Dr. Sullivan’s June visit, petitioner told Dr. Sullivan
that he had suffered significant losses during the first quarter
of the 2000 taxable year and that, consequently, his DLJdirect
account had been liquidated on April 14, 2000. Dr. Sullivan knew
several professional “day traders” and informed petitioner that
he might be able to deduct his security losses as ordinary
losses. Before Dr. Sullivan’s June visit, petitioner had no
indication that petitioner might be able to claim ordinary losses
for his securities trading business.
On the next day, June 5, 2000, petitioner attempted to
contact another accountant, Charles E. Sellers (Mr. Sellers),
regarding the possibility of deducting his losses as a securities
trader. On June 6, 2000, petitioner spoke with Mr. Sellers by
telephone and told him that Dr. Sullivan had suggested that
petitioner might be able to deduct his losses as a securities
trader as ordinary losses. At the time of petitioner’s
telephone conversation with Mr. Sellers, Mr. Sellers was unaware
of section 475(f) and the mark-to-market election available to
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