Interpreted Prediction
Without mark-to-market accounting, traders will only be able to deduct $3,000 in capital losses per year against income and may end up owing more tax than their actual net profit.
AI Evaluation Notes
The prediction accurately describes the tax implications for traders who do not use mark-to-market accounting. Without it, the $3,000 capital loss deduction limit applies, potentially leading to higher tax liability than net profit, which aligns with standard tax regulations [cite: i].