Source: https://uscode.house.gov/view.xhtml?req=%28title:26%20section:1092%20edition:prelim%29
Timestamp: 2020-08-11 00:26:31
Document Index: 261266068

Matched Legal Cases: ['§ 1092', '§501', '§105', '§101', '§331', '§1261', '§1808', '§6130', '§1271', '§532', '§1', '§401', '§888', '§403', '§7', '§401', '§401', '§7', '§888', '§888', '§331', '§107', '§105', '§105', '§7', '§331', '§101', '§103', '§2', '§107', '§508', '§2', '§108', '§2', '§1808']

[USC02] 26 USC 1092: Straddles
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26 USC 1092: Straddles Text contains those laws in effect on August 9, 2020
In the case of any straddle which is an identified straddle-
(iii) if the application of clause (ii) does not result in an increase in the basis of any offsetting position in the identified straddle, the basis of each of the offsetting positions in the identified straddle shall be increased in a manner which-
The term "identified straddle" means any straddle-
(i) which is clearly identified on the taxpayer's records as an identified straddle before the earlier of-
The term "unrecognized gain" means-
Each taxpayer shall disclose to the Secretary, at such time and in such manner and form as the Secretary may prescribe by regulations-
The regulations prescribed under paragraph (1) shall provide that-
(i) the taxpayer may offset gains and losses from positions which are part of mixed straddles-
In the case of any mixed straddle account referred to in subparagraph (A)(i)(II)-
For purposes of paragraph (2), 2 or more positions shall be presumed to be offsetting if-
For purposes of subparagraph (A), the term "qualified covered call option" means any option granted by the taxpayer to purchase stock held by the taxpayer (or stock acquired by the taxpayer in connection with the granting of the option) but only if-
In the case of an option-
Subparagraph (A) shall not apply to any straddle for purposes of section 1092(a) if-
For purposes of subparagraph (D), the term "applicable stock price" means, with respect to any stock for which an option has been granted-
In the case of stock, the term "personal property" includes stock only if-
For purposes of subparagraph (A), a person is a related person to the taxpayer if with respect to any period during which a position is held by such person, such person-
For purposes of subsection (a), if a taxpayer settles a position which is part of a straddle by delivering property to which the position relates (and such position, if terminated, would result in a realization of a loss), then such taxpayer shall be treated as if such taxpayer-
If a taxpayer holds any stock and grants a qualified covered call option to purchase such stock with a strike price less than the applicable stock price-
(Added Pub. L. 97–34, title V, §501(a), Aug. 13, 1981, 95 Stat. 323 ; amended Pub. L. 97–448, title I, §105(a)(1)(A)–(C), (2)–(4), Jan. 12, 1983, 96 Stat. 2384 , 2385; Pub. L. 98–369, div. A, title I, §§101(a)–(d), 102(e)(2), 103(a), 107(a), July 18, 1984, 98 Stat. 616–619 , 624, 627, 629; Pub. L. 99–514, title III, §331(a), title XII, §1261(b), title XVIII, §§1808(c), 1899A(66), Oct. 22, 1986, 100 Stat. 2220 , 2591, 2817, 2962; Pub. L. 100–647, title VI, §6130(c), Nov. 10, 1988, 102 Stat. 3719 ; Pub. L. 105–34, title XII, §1271(b)(9), Aug. 5, 1997, 111 Stat. 1037 ; Pub. L. 106–170, title V, §532(c)(1)(F), Dec. 17, 1999, 113 Stat. 1930 ; Pub. L. 106–554, §1(a)(7) [title IV, §401(e)], Dec. 21, 2000, 114 Stat. 2763 , 2763A-649; Pub. L. 108–357, title VIII, §888(a)–(c)(1), Oct. 22, 2004, 118 Stat. 1642 , 1643; Pub. L. 109–135, title IV, §403(ii), Dec. 21, 2005, 119 Stat. 2632 ; Pub. L. 110–172, §7(d), Dec. 29, 2007, 121 Stat. 2482 ; Pub. L. 115–141, div. U, title IV, §401(a)(170), (171), Mar. 23, 2018, 132 Stat. 1192 .)
2018-Subsec. (a)(2)(B). Pub. L. 115–141, §401(a)(170), substituted "with respect to other" for "with respect other" in concluding provisions.
2007-Subsec. (a)(2)(A)(i). Pub. L. 110–172, §7(d)(2)(B)(i), substituted "positions" for "identified positions".
2005-Subsec. (a)(2). Pub. L. 109–135 added subpar. (C) and struck out concluding provisions of subpar. (B) which read as follows: "The Secretary shall prescribe regulations which specify the proper methods for clearly identifying a straddle as an identified straddle (and the positions comprising such straddle), which specify the rules for the application of this section for a taxpayer which fails to properly identify the positions of an identified straddle, and which specify the ordering rules in cases where a taxpayer disposes of less than an entire position which is part of an identified straddle."
2004-Subsec. (a)(2)(A). Pub. L. 108–357, §888(a)(1), reenacted heading without change and amended text of subpar. (A) generally. Prior to amendment, text read as follows: "In the case of any straddle which is an identified straddle as of the close of any taxable year-
Subsec. (a)(2)(B)(ii). Pub. L. 108–357, §888(a)(2)(A), added cl. (ii) and struck out former cl. (ii) which read as follows: "all of the original positions of which (as identified by the taxpayer) are acquired on the same day and with respect to which-
2000-Subsec. (d)(3)(B)(i)(II), (III). Pub. L. 106–554 added subcl. (II) and redesignated former subcl. (II) as (III).
1999-Subsec. (a)(3)(B)(ii)(II). Pub. L. 106–170 substituted "1221(a)" for "1221".
1997-Subsec. (f)(2). Pub. L. 105–34 substituted "The" for "Except for purposes of section 851(b)(3), the".
1988-Subsec. (b)(2)(D). Pub. L. 100–647 added subpar. (D).
1986-Subsec. (c)(4)(E). Pub. L. 99–514, §331(a), in cl. (i), inserted "or the stock is disposed of at a loss", in cl. (ii), substituted "or gains on such options are" for "is", and in cl. (iii), inserted "or option" and "or the disposition of such stock".
1984-Subsec. (a)(2)(B)(i). Pub. L. 98–369, §107(a), designated existing provisions as subcl. (I) and added subcl. (II).
1983-Subsec. (a)(1)(A). Pub. L. 97–448, §105(a)(1)(A), (2), substituted "unrecognized gain" for "unrealized gain" and "which were offsetting positions with respect to 1 or more positions from which the loss arose" for "which- (i) were acquired by the taxpayer before the disposition giving rise to such loss, (ii) were offsetting positions with respect to the 1 or more positions from which the loss arose, and (iii) were not part of an identified straddle as of the close of the taxable year".
Subsec. (d)(4). Pub. L. 97–448, §105(a)(3), substituted "a straddle at least 1 (but not all) of the positions of which are regulated futures contracts, the provisions of this section shall apply" for "a straddle- (A) at lease 1 (but not all) of the positions of which are regulated futures contracts, and (B) with respect to which the taxpayer has elected not to have the provisions of section 1256 apply, the provisions of this section shall apply".
Pub. L. 110–172, §7(e), Dec. 29, 2007, 121 Stat. 2483 , provided that:
"(1) In general.-Except as otherwise provided in this subsection, the amendments made by this section [amending this section and sections 45, 45H, 179B, 280C, 470, 1016, and 6501 of this title] shall take effect as if included in the provisions of the American Jobs Creation Act of 2004 [Pub. L. 108–357] to which they relate.
"(2) Identification requirement of amendment related to section 888 of the american jobs creation act of 2004.-The amendment made by subsection (d)(2)(A) [amending this section] shall apply to straddles acquired after the date of the enactment of this Act [Dec. 29, 2007]."
Pub. L. 99–514, title III, §331(b), Oct. 22, 1986, 100 Stat. 2221 , provided that: "The amendments made by this section [amending this section] shall apply to positions established on or after January 1, 1987."
Pub. L. 98–369, div. A, title I, §101(e), July 18, 1984, 98 Stat. 619 , provided that:
"(1) In general.-Except as otherwise provided in this subsection, the amendments made by this section [amending this section] shall apply to positions established after December 31, 1983, in taxable years ending after such date.
"(2) Special rule for offsetting position stock.-In the case of any stock of a corporation formed or availed of to take positions in personal property which offset positions taken by any shareholder, the amendments made by this section shall apply to positions established on or after May 23, 1983, in taxable years ending on or after such date.
"(3) Subsection (c).-The amendment made by subsection (c) [amending this section] shall apply to positions established after June 30, 1984, in taxable years ending after such date.
"(4) Subsection (d).-The amendment made by subsection (d) [amending this section] shall apply to positions established after the date of the enactment of this Act in taxable years ending after such date."
Pub. L. 98–369, div. A, title I, §103(b), (c), July 18, 1984, 98 Stat. 628 , as amended by Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095 , provided that:
"(b) Requirement That Regulations Be Issued Within 6 Months After the Date of Enactment.-The Secretary of the Treasury or his delegate shall prescribe initial regulations under section 1092(b) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (including regulations relating to mixed straddles) not later than the date 6 months after the date of the enactment of this Act [July 18, 1984].
"(c) Effective Date of Regulations With Respect to Mixed Straddles.-The regulations described in subsection (b) with respect to the application of section 1233 of the Internal Revenue Code of 1986 to mixed straddles shall not apply to mixed straddles all of the positions of which were established before January 1, 1984."
Pub. L. 98–369, div. A, title I, §107(e), July 18, 1984, 98 Stat. 630 , provided that: "The amendments made by this section [amending this section and sections 1236 and 1256 of this title] shall apply to positions entered into after the date of the enactment of this Act [July 18, 1984], in taxable years ending after such date."
Pub. L. 97–34, title V, §508, Aug. 13, 1981, 95 Stat. 333 , as amended by Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095 , provided that:
"(a) In General.-Except as otherwise provided in this section, the amendments made by this title [enacting this section and sections 1234A and 1256 of this title, amending sections 263, 341, 1212, 1221, 1231, 1232, 1233, 1236, and 6653 of this title, and enacting provisions set out as a note under section 1256 of this title] shall apply to property acquired and positions established by the taxpayer after June 23, 1981, in taxable years ending after such date.
"(b) Identification Requirements.-
"(1) Under section 1236 of code.-The amendments made by section 506 [amending section 1236 of this title] shall apply to property acquired by the taxpayer after the date of the enactment of this Act [Aug. 13, 1981] in taxable years ending after such date.
"(2) Under section 1256(e)(2)(c) of code.-Section 1256(e)(2)(C) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by this title) shall apply to property acquired and positions established by the taxpayer after December 31, 1981, in taxable years ending after such date.
"(c) Election With Respect to Property Held on June 23, 1981.-If the taxpayer so elects (at such time and in such manner as the Secretary of the Treasury or his delegate shall prescribe) with respect to all regulated futures contracts or positions held by the taxpayer on June 23, 1981, the amendments made by this title shall apply to all such contracts and positions, effective for periods after such date in taxable years ending after such date. For purposes of the preceding sentence, the term 'regulated futures contract' has the meaning given to such term by section 1256(b) of the Internal Revenue Code of 1986, and the term 'position' has the meaning given to such term by section 1092(d)(2) of such Code."
Pub. L. 98–369, div. A, title I, §108, July 18, 1984, 98 Stat. 630 , as amended by Pub. L. 99–514, §2, title XVIII, §1808(d), Oct. 22, 1986, 100 Stat. 2095 , 2817, provided that:
"(a) General Rule.-For purposes of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], in the case of any disposition of 1 or more positions-
"(b) Loss Incurred in a Trade or Business.-For purposes of subsection (a), any loss incurred by a commodities dealer in the trading of commodities shall be treated as a loss incurred in a trade or business.
"(c) Net Loss Allowed.-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 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 made without regard to whether such position constitutes part of a straddle.
"(e) Straddle.-For purposes of this section, the term 'straddle' has the meaning given to such term by section 1092(c) of the Internal Revenue Code of 1986 as in effect on the day after the date of the enactment of the Economic Recovery Tax Act of 1981 [Aug. 13, 1981], and shall include a straddle all the positions of which are regulated futures contracts.
"(f) Commodities Dealer.-For purposes of this section, the term 'commodities dealer' means any taxpayer who-
"(2) was a member of the family (within the meaning of section 704(e)(3) [now 704(e)(2)] of such Code) of an individual described in paragraph (1) to the extent such member engaged in commodities trading through an organization the members of which consisted solely of-
"(g) Regulated Futures Contracts.-For purposes of this section, the term 'regulated futures contracts' has the meaning given to such term by section 1256(b) of the Internal Revenue Code of 1986 (as in effect before the date of enactment of this Act [July 18, 1984]).
"(h) Syndicates.-For purposes of this section, any loss incurred by a person (other than a commodities dealer) with respect to an interest in a syndicate (within the meaning of section 1256(e)(3)(B) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) shall not be considered to be a loss incurred in a trade or business."