Jack Misses the Mark-to-Market Election!
Annual Advances in Business Cases
Society for Case Research
This decision case is based on an actual court case whereby the taxpayer was a professional securities trader who argued for an extension of time to file for mark-to-market valuation when calculating securities gains and losses from the taxpayer's stock portfolio. Per Sec. 475(f), professional securities traders could deduct stock losses as ordinary losses rather than capital losses, and net these losses against any ordinary income earned. This multi-million dollar court case provides a classic example of various interpretations of the tax code and the importance of maintaining requisite knowledge in tax laws.
law, mark-to-market, securities, tax
Carl E. Keller Jr., J. C. Papiernik, and George Schmelzle (2008).
Jack Misses the Mark-to-Market Election!. Annual Advances in Business Cases. 134-140. Society for Case Research.