id	author	title	date	pages	extension	mime	words	sentence	flesch	summary	cache	txt
ftr-397	Oei, Shu-Yi	A Structural Critique of Trader Taxation	2022	56	.pdf	application/pdf	26280	953	52	Such capital gains and losses may be taxed at reduced rates and subject to other different tax treatments.2 Since the enactment of IRC section 475(f) in 1997, traders have also been allowed to make a special election to “mark to market” gains and losses from their securities-trading activities.3 Making this election allows a trader to recognize gains and losses on the securities he holds as if those securities were sold at fair market value on the last business day of the trader’s taxable year, and to convert such gains or losses to ordinary, rather than capital, gains or losses.4 The distinctive tax treatment of securities traders has been frequently pointed out, and various commentators have noted that, although the standards for qualifying for trader treatment are uncertain, favorable planning opportunities arise upon achieving such classification.5 However, 1. [Vol. 8:10 SECTION I: INTRODUCTION Taxpayers who are securities traders are subject to unusual treatment under the tax law.1 Such a taxpayer is, like any other merchant or businessperson, allowed to deduct various expenses incurred in his business of trading securities but, unlike any other merchant or businessperson, is simultaneously allowed to treat gains and losses from the sale of such securities as capital, rather than ordinary, gains and losses.	cache/ftr-397.pdf	txt/ftr-397.txt