236 
‘‘(I) any foreign expropriation 
loss (as defined in section 172(h) (as in 
effect on the day before the date of the 
enactment of the Revenue Reconcili-
ation Act of 1990)) for the taxable 
year, or 
‘‘(II) any loss for the taxable year 
which arises from fire, storm, ship-
wreck, or other casualty, or from theft, 
to the extent such loss is not compensated 
for by insurance or otherwise. 
‘‘(iv) 
FOREIGN
OIL
EXTRACTION 
LOSS.—For 
purposes 
of 
subparagraph 
(B)(ii)(I), foreign oil extraction losses shall 
be determined under this paragraph as in 
effect on the day before the date of the enact-
ment of the Energy Improvement and Ex-
tension Act of 2008.’’. 
(c) CARRYBACK
AND CARRYOVER
OF DISALLOWED 
CREDITS.—Section 907(f) (relating to carryback and carry-
over of disallowed credits) is amended— 
(1) by striking ‘‘oil and gas extraction taxes’’ 
each place it appears and inserting ‘‘foreign oil and 
gas taxes’’, and
237 
(2) by adding at the end the following new para-
graph: 
‘‘(4) TRANSITION RULES FOR PRE-2009 AND 2009 
DISALLOWED CREDITS.— 
‘‘(A) PRE-2009 CREDITS.—In the case of any 
unused credit year beginning before January 1, 
2009, this subsection shall be applied to any un-
used oil and gas extraction taxes carried from 
such unused credit year to a year beginning 
after December 31, 2008— 
‘‘(i) by substituting ‘oil and gas extrac-
tion taxes’ for ‘foreign oil and gas taxes’ 
each place it appears in paragraphs (1), 
(2), and (3), and 
‘‘(ii) by computing, for purposes of 
paragraph (2)(A), the limitation under sub-
paragraph (A) for the year to which such 
taxes are carried by substituting ‘foreign oil 
and gas extraction income’ for ‘foreign oil 
and gas income’ in subsection (a). 
‘‘(B) 2009 CREDITS.—In the case of any 
unused credit year beginning in 2009, the 
amendments made to this subsection by the En-
ergy Improvement and Extension Act of 2008 
shall be treated as being in effect for any pre-
238 
ceding year beginning before January 1, 2009, 
solely for purposes of determining how much of 
the unused foreign oil and gas taxes for such un-
used credit year may be deemed paid or accrued 
in such preceding year.’’. 
(d) CONFORMING AMENDMENT.—Section 6501(i) is 
amended by striking ‘‘oil and gas extraction taxes’’ and in-
serting ‘‘foreign oil and gas taxes’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2008. 
SEC. 403. BROKER REPORTING OF CUSTOMER’S BASIS IN 
SECURITIES TRANSACTIONS. 
(a) IN GENERAL.— 
(1) BROKER REPORTING FOR SECURITIES TRANS-
ACTIONS.—Section 6045 is amended by adding at the 
end the following new subsection: 
‘‘(g) ADDITIONAL INFORMATION REQUIRED IN THE 
CASE OF SECURITIES TRANSACTIONS, ETC.— 
‘‘(1) IN GENERAL.—If a broker is otherwise re-
quired to make a return under subsection (a) with re-
spect to the gross proceeds of the sale of a covered se-
curity, the broker shall include in such return the in-
formation described in paragraph (2). 
‘‘(2) ADDITIONAL INFORMATION REQUIRED.—
239 
‘‘(A) IN
GENERAL.—The information re-
quired under paragraph (1) to be shown on a re-
turn with respect to a covered security of a cus-
tomer shall include the customer’s adjusted basis 
in such security and whether any gain or loss 
with respect to such security is long-term or 
short-term (within the meaning of section 1222). 
‘‘(B) 
DETERMINATION
OF
ADJUSTED 
BASIS.—For purposes of subparagraph (A)— 
‘‘(i) IN GENERAL.—The customer’s ad-
justed basis shall be determined— 
‘‘(I) in the case of any security 
(other than any stock for which an av-
erage basis method is permissible 
under section 1012), in accordance 
with the first-in first-out method unless 
the customer notifies the broker by 
means of making an adequate identi-
fication of the stock sold or transferred, 
and 
‘‘(II) in the case of any stock for 
which an average basis method is per-
missible under section 1012, in accord-
ance with the broker’s default method 
unless the customer notifies the broker
240 
that he elects another acceptable meth-
od under section 1012 with respect to 
the account in which such stock is held. 
‘‘(ii) EXCEPTION FOR WASH SALES.— 
Except as otherwise provided by the Sec-
retary, the customer’s adjusted basis shall be 
determined without regard to section 1091 
(relating to loss from wash sales of stock or 
securities) unless the transactions occur in 
the same account with respect to identical 
securities. 
‘‘(3) COVERED SECURITY.—For purposes of this 
subsection— 
‘‘(A) IN GENERAL.—The term ‘covered secu-
rity’ means any specified security acquired on or 
after the applicable date if such security— 
‘‘(i) was acquired through a trans-
action in the account in which such security 
is held, or 
‘‘(ii) was transferred to such account 
from an account in which such security was 
a covered security, but only if the broker re-
ceived a statement under section 6045A 
with respect to the transfer.