The mark to market election under Section 475(f) can have a major impact for individuals that were unsuccessful in their attempt to become a day trader-which turns out to be the majority of those who try.  However, the election has rather strict requirements on when the election must be filed, and as the taxpayer in Knish v. Commissioner, TC Memo 2006-268, learned as he tried to unsuccessfully argue for the validity of his election filed 18 months after the date that Revenue Procedure 99-17 required it have been filed.

The materials for this podcast can be downloaded at http://edzollars.com/2006-12-31_Mark_to_Market.pdf .

The podcast is sponsored by Leimberg Information Services, found on the web at http://www.leimbergservices.com .

This week the IRS decided to send a warning to accrual basis taxpayers that the IRS has some very specific ideas on the proper application of the recurring item exception.  We look at Revenue Ruling 2007-3 and the issues it raises for deductions on contracts entered into near year end.

The materials for this podcast can be downloaded from http://edzollars.com/2006-12-23_Accrued_Expenses.pdf .

The podcast is sponsored by Leimberg Information Services .

Congress got around to passing the extenders in the Tax Relief and Health Care Act of 2006 early on Saturday morning, which picked up a number of the items that expired at the end of 2005 and had not yet been extended.  One provision added in the bill gives relief to individuals who have old, unused minimum tax credit which is discussed in this podcast.

The materials can be downloaded at http://edzollars.com/2006-12-09_Giving_Credit.pdf .

The podcast is sponsored by Leimberg Information Services at http://www.leimbergservices.com .

The issue of whether an individual is or isn't considered an active participant in a retirement plan can be complex, as the taxpayer found out in the case of Colombell v. Commissioner, TC Summary 2006-184.  As the taxpayer discovered, the mere fact she was not earning any benefit under the plan (nor was she likely ever to do so) did not mean she was not an active participant, as the regulations define that term.

The materials can be downloaded from http://edzollars.com/2006-12-02_Participant.pdf .

The podcast is sponsored by Leimberg Information Services, located on the web at http://www.leimbergservices.com .