This is nagging at me like crazy. If you are like me, and were MTM for the first time for the 2002 tax year, and had to file form 3115 to indicate an automatic accounting change, what is the correct answer for Part II, question 8? 8. Is the applicant requesting to change its overall method of accounting? If "Yes," check the appropriate boxes below to indicate the applicant's present and proposed methods of accounting. Also complete Schedule A on page 4 of the form. Present method : Cash Accrual Hybrid Proposed method: Cash Accrual Hybrid Now, I would think that a normal investor would be cash only, and a MTM trader would be accrual, since as MTM you treat any unrealized gains as if they were realized as cash based on 12/31 closing market price. BUT, if you go to http://www.fairmark.com/traders/mtmelec2.htm, you will read "The good news: only the first three pages of this eight-page monster apply to you" and that means to me that the answer to #8 above has to be "no," since if you choose "yes" for #8, you have to fill out page 4 of form 3115. For the guys who elected MTM for 2002 tax year for the first time, what did you put for Part II, #8?? Thanks in advance, -b