Taxpayer Fails to Show Procedures in Revenue Procedure 99-17 Followed in Prior Year, No Current Year Use of Mark To Market Allowed for Trading Business

If a taxpayer is a trader and properly elects under IRC §475(f) to use the mark to market treatment, the gains and losses from the trading activity are treated as ordinary, rather than capital, gains and losses.  Of particular significance is that losses in excess of gains will not be subject to a $3,000 annual limitation.

In the case of Poppe v. Commissioner, TC Memo 2015-205 the question at hand was whether, in fact, Mr. Poppe had ever properly made the election in question.

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