An introduction to the rules under section 475 and how those rules apply to banks
Share
Under section 475, Congress enacted rules that require dealers in securities to apply mark-to-market (MTM) accounting to their securities portfolios. In many cases, a traditional lender qualifies as a dealer in securities and the lender’s loans will meet the definition of a security. Therefore, the lender may be required to carry its loan portfolio, as well as its other securities portfolios, at fair market value in its tax books. While the concept seems relatively straightforward, the application of the rules to banks continues to raise challenges for tax departments. The purpose of this article is to provide an introduction to the rules under section 475 and how those rules apply to banks. It will also address certain elections under section 475 that banks may consider to achieve their desired tax objectives.
Dive into our thinking:
Section 475 Mark to Market
Download PDFExplore more
Industry
Webcast ReplayWebcast UpcomingListen Now
Banking and capital markets
Delivering financial strategies that work and results that matter.
Insight
Webcast ReplayWebcast UpcomingListen Now
Turn Insights into action
Fresh thinking and actionable insights that address critical issues your organization faces.
Insight
Webcast ReplayWebcast UpcomingListen Now
Tax Essentials for the Banking Industry
Articles on essential tax concepts for banking professionals
Meet our team
Contact Us