TN 9 (02-98)
CITATIONS:
In computing NESE, exclude gain or loss from the:
sale or exchange of a capital asset;
cutting of timber or disposal of timber, coal or iron ore if section 631 of the IRC applies;
sale or other disposition of property that is not stock in trade or held primarily for sale to customers in the ordinary course of a trade or business.
Options dealers and commodities dealers compute their NESE including any gains or losses on capital assets acquired in the normal course of their trading.