L.S. Vines - Page 14

                                       - 14 -                                         
                                       OPINION                                        
               The issue we decide is whether, pursuant to section                    
          301.9100-3, Proced. & Admin. Regs., petitioner should be granted            
          an extension of time to file a section 475(f) election for his              
          taxable year 2000.  Section 475(f) provides as follows:                     
                    SEC. 475(f) Election of Mark to Market for Traders in             
               Securities or Commodities.--                                           
                    (1) Traders in securities.--                                      
                         (A) In general.--In the case of a person who is              
                    engaged in a trade or business as a trader in                     
                    securities and who elects to have this paragraph apply            
                    to such trade or business--                                       
                              (i) such person shall recognize gain or loss            
                         on any security held in connection with such trade           
                         or business at the close of any taxable year as if           
                         such security were sold for its fair market value            
                         on the last business day of such taxable year, and           
                              (ii) 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 subparagraph at times other than              
                    the times provided in this subparagraph.                          
               In general, section 475(f) allows a taxpayer engaged in a              
          trade or business as a securities trader to elect the mark-to-              
          market method of accounting.  After making the election, the                
          taxpayer must recognize gain on or loss on any security held in             
          connection with the securities trading business as if the                   
          security were sold for its fair market value on the last business           






Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  Next

Last modified: May 25, 2011