C-corporation trades futures and has $100,000 revenue from trading, $40,000 losses from trading, and $50,000 other expenses. Does the Corp has to make trade-to-market election to subtract all losses, or or the mark-to-market election is not needed for the Corp?

For a C-corporation that trades in futures, the mark-to-market election under IRC Section 475(f) is not mandatory to deduct trading losses. C-corporations are subject to different tax rules than individuals or pass-through entities like S-corporations or partnerships. In general, a C-corporation can deduct its ordinary and necessary business expenses, including losses from trading futures, against its revenue. The $40,000 in trading losses and $50,000 in other expenses you mentioned would typically be deductible against the $100,000 in revenue from trading, assuming these are all legitimate business expenses. The mark-to-market election is more commonly discussed in the context of traders who seek to have their gains and losses treated as ordinary income and losses, rather than capital, which is more relevant for individuals and pass-through entities. This election can also remove the limitation on capital loss deductions and the wash sale rule, but for a C-corporation, these issues are not as significant because corporations are not subject to the same capital loss limitations as individuals. However, it's important to note that certain futures contracts may be subject to special tax rules, such as Section 1256 contracts, which are marked to market by default and taxed at a blended rate of 60% long-term and 40% short-term capital gains, regardless of the holding period. As always, it's recommended to consult with a tax professional or CPA who can provide advice based on the specific details of the corporation's

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