98 STAT. 630
PUBLIC LAW 98-369—JULY 18, 1984 ••-'•••
M'&i 3PJi ys
"(i) which is clearly identified on the taxpayer's records as an identified straddle before the earlier of— "(I) the close of the day on which the straddle is acquired, or "(II) such time as the Secretary may prescribe by regulations."
(b) DEALERS IN SECURITIES.—
26 USC 1236. 0£^) 4.lij^k
26 USC 1256.
"
(1) Paragraph (1) of section 1236(a) (relating to capital gain of dealers in securities) is amended to read as follows: "(1) the security was, before the close of the day on which it was acquired (or such earlier time as the Secretary may prescribe by regulations), clearly identified in the dealer's records as a security held for investment; and". (2) Paragraph (2) of section 1236(a) is amended by inserting "(or such earlier time)" after "such day". (c) MIXED STRADDLES.—Subparagraph (B) of section 1256(d)(4) (de-
fining mixed straddles) is amended by inserting "(or such earlier time as the Secretary may prescribe by regulations)" after "acquired". km. >6i' Bi
<:;t., 26 USC 1092 note. 26 USC 1092 note.
(d)
HEDGING
TRANSACTIONS.—Subparagraph
(C)
of
section
1256(e)(2) (defining hedging transactions) is amended by inserting "(or such earlier time as the Secretary may prescribe by regulations)" after "entered into". (e) EFFECTIVE DATE.—The amendments made by this section shall apply to positions entered into after the date of the enactment of this Act, in taxable years ending after such date. SEC. 108. TREATMENT OF CERTAIN LOSSES ON STRADDLES ENTERED INTO BEFORE EFFECTIVE DATE OF ECONOMIC RECOVERY TAX ACT OF 1981.
(a) GENERAL RULE.—For purposes of the Internal Revenue Code of 26 USC 1 et seq. 1954, in the case of any disposition of 1 or more positions— (1) which were entered into before 1982 and form part of a straddle, and (2) to which the amendments made by title V of the Economic 95 Stat. 323. Recovery Tax Act of 1981 do not apply, any loss from such disposition shall be allowed for the taxable year of the disposition if such position is part of a transaction entered into for profit. (b) PRESUMPTION THAT TRANSACTION ENTERED INTO FOR PROFIT.—
i? O OP'u ds f -ijof
For purposes of subsection (a), any position held by a commodities dealer or any person regularly engaged in investing in regulated futures contracts shall be rebuttably presumed to be part of a transaction entered into for profit. (c) NET Loss ALLOWED WHETHER OR NOT TRANSACTION ENTERED INTO FOR PROFIT.—If any loss with respect to a position described in paragraphs (1) and (2) of subsection (a) is not allowable as a deduction (after applying subsections (a) and (b)), such loss shall be allowed in determining the gain or loss from dispositions of other positions in the straddle to the extent required to accurately reflect the taxpayer's net gain or loss from all positions in such straddle, (d) OTHER RULES.—Except as otherwise provided in subsections (a)
and (c) and in sections 1233 and 1234 of such Code, the determination of whether there is recognized gain or loss with respect to a S®; "yF-'j. K: position, and the amount and timing of such gain or loss, and the treatment of such gain or loss as long-term or short-term shall be
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