Page 45 - Large Business IRS Training Guides

BE%
– MTM Rule

• Special
rule for mark-to-market (“MTM”) transactions

any transactions with respect to which taxpayer
• For

the MTM method of accounting, taxpayer must
applies
items of income, gain, loss, or deduction
combine all
arising from
the transaction for the taxable year

each item arises; for instance, from a
• Regardless of how

a mark
payment, accrual or

• Only one mark
allowed for taxable year on earlier of
last business
day of taxpayer’s taxable year or the

disposition of position

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