TN 9 (02-98)

Citations:

Section 404.1084 of Regulation No. 4 Social Security Act

POLICY

1. General Rule

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.

2. Options and Commodities Dealers

Options dealers and commodities dealers compute their NESE including any gains or losses on capital assets acquired in the normal course of their trading.