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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: OD Bobo who wrote (1763)	1/16/1999 5:08:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 5810

The trader Status mark-to-market method of accounting in Sec 475 is an optional election made by qualifying taxpayers. Once elected then it is only at the option of the I.R.S. (generally at the request of the taxpayer) if the election is to be reversed. Subject 5727

To: OD Bobo who wrote (1763)	1/17/1999 11:41:00 PM
From: Robert A. Green, CPA	Read Replies (1) \| Respond to of 5810

Free info on mark-to-market accounting for Traders is posted at greencompany.com If you were a Trader rather than an Investor in 1997, and you wish to elect mark-to-market accounting as a Trader in 1998, you need to follow the "change of accounting" rules. Automatic changes can be filed with your tax return. Otherwise, you had to file the change of accounting form before year end 1998. If you were an Investor in 1997 and become a Trader in 1998 and elected mark-to-market from day one as a Trader, then you may not have to file a change of accounting form. Changes of accounting method sometimes require a Section 481 adjustment (eg. 4 years). There are different tax rules and benefits for Investors, Traders not electing mark-to-market and Traders electing mark-to-market. Read about these different tax laws at greencompany.com All the information is freely available at the site. We are working on a newly updated Trader Tax Guide to include the answers to some of the above mark-to-market questions in regards to changes of accounting method. If you are starting in the trading business in 1999, make sure to pick the correct tax status from the start.