# Prop. Treas. Reg. § 1.446-1: General rule for methods of accounting.

Proposed regulation, not in force. REG-104924-98, 64 FR 4374, published 1999-01-28 <https://www.federalregister.gov/documents/1999/01/28/99-1787/mark-to-market-accounting-for-dealers-in-commodities-and-traders-in-securities-or-commodities>. Interprets 26 U.S.C. § 446.

Par. 2. In Sec. 1.446-1, paragraph (c)(2)(iii) is added to read as follows:

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(c) * * *

(2) * * *

(iii) Section 475 is the exclusive authority on which a taxpayer may rely to use the mark-to-market method of accounting for nonfinancial customer paper, as defined in section 475(c)(4)(B). Thus, except to the extent provided in Sec. 1.475(c)-2(d), the mark-to-market method of accounting is not a permissible method of accounting for nonfinancial customer paper. In addition, the lower-of-cost-or-market method of accounting is not a permissible method of accounting for these assets. See Sec. 1.471-12. This paragraph (c)(2)(iii) applies to all tax years ending on or after January 28, 1999.

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