L.S. Vines - Page 9

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               Based on the limited number of securities transactions                 
               in 1999 as set forth above and since [petitioner] was                  
               still engaged in the full time practice of law for all                 
               of 1999, it seems clear that he did not qualify as a                   
               trader in securities in 1999 and therefore has not                     
               adopted a method of accounting for his trade or                        
               business as a securities trader in any year prior to                   
               2000.  For this reason, there is no adjustment under                   
               section 481(a).                                                        
               Caplin & Drysdale advised petitioner that he had bound                 
          himself to adopt the mark-to-market method of accounting for his            
          trading business by filing the section 475(f) election and the              
          protective Form 3115 and requesting section 9100 relief on                  
          July 21, 2000.  On that basis, Caplin & Drysdale advised                    
          petitioner that he could resume his securities trading activities           
          without adversely affecting his request for section 9100 relief.            
          Mr. Sellers gave petitioner the same advice.  Based on Caplin &             
          Drysdale’s and Mr. Sellers’ advice, petitioner resumed his                  
          trading activities on July 26, 2000.                                        
               Between the date that petitioner should have filed his                 
          section 475(f) election, April 17, 2000, and the date petitioner            
          actually filed his section 475(f) election, July 21, 2000,                  
          petitioner:  (1) Did not purchase any publicly-traded stock; (2)            
          did not sell any publicly traded stock; and (3) had no gain or              
          loss from the disposition of any publicly traded stock.  Thus,              
          petitioner’s losses on July 21, 2000, were exactly the same as              
          they were on April 17, 2000.                                                







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