Still very confused on this one. If I elect MTM, and lose 60/40 what are ordinary gains? You mean oridinary income? What futures trader in his right mind would ever under any circumstances elect mtm? Surely on April 15th of current year he is not expecting to lose for the year, and the only benefit I see is if he loses he can convert cap loss to ordinary loss, but still, he needs somehow to come up with some ordinary income to offset. I have read everything I can find, and as it stands now, the way I see it, the new MTM law is simply a law to bring stock traders up to where futures traders have always been. So the MTM election should not be used by futures traders if it in fact nullifies their one remaing tax advantage over stock traders, namely the 60/40 split. Notice how long it goes between posts on this thread? man I mean it takes a lot of looking around, and way too many accountants disagree on way too much. So, it is still not clear, but as I see it, a trader who trades both stocks and futures should be VERY CAREFUL to keep those accounts separate, and should be darn sure that the MTM election applies only to accounts and not to the trader/taxpayer, and even that still seems to be in question.