Do you know what the IRS requires for a trader to hold long-term investments?

A trader in securities who elects mark-to-market accounting (IRS Code Section 475) for his/her trading business must identify any security held as a long-term investment at the time acquired. Traders are not able to selectively mark-to-market some securities and identify others as exempt from this treatment. There is a higher burden of proof for traders who want to hold long-term investments in addition to their trading business. Under Section 475, the proposed regulations state that long-term securities are to be held in a separate, nontrading account maintained with a third party.