Page:United States Statutes at Large Volume 95.djvu/350

 95 STAT. 324

PUBLIC LAW 97-34—AUG. 13, 1981 "(B) IDENTIFIED STRADDLE.—The term 'identified straddle' means any straddle— "(i) which is clearly identified on the taxpayer's records, before the close of the day on which the straddle is acquired, as an identified straddle, "(ii) all of the original positions of which (as identified by the taxpayer) are acquired on the same day and with respect to which— "(I) all of such positions are disposed of on the same day during the taxable year, or "(II) none of such positions has been disposed of as of the close of the taxable year, and "(iii) which is not part of a larger straddle. "(3) UNREAUZED GAIN.—For purposes of this subsection— "(A) IN GENERAL.—The term 'unrealized gain' means the amount of gain which would be taken into account with respect to any position held by the taxpayer as of the close of the taxable year if such position were sold on the last business day of such taxable year a t its fair market value. "(B) REPORTING OF GAIN.—

"(i) IN GENERAL.—Each taxpayer shall disclose to the Secretary, at such time and in such manner and form as the Secretary may prescribe by regulations— "(I) each position (whether or not part of a straddle) which is held by such taxpayer as of the close of the taxable year and with respect to which there is unrealized gain, and "(II) the amount of such unrealized gain, "(ii) REPORTS NOT REQUIRED IN CERTAIN CASES.—Clause

Post, p. 327.

(i) shall not apply— "(I) to any position which is part of an identified straddle, "(II) to any position which, with respect to the taxpayer, is property described in paragraph (1) or (2) of section 1221 or to any position which is part of a hedging transaction (as defined in section 1256(e)), or "(III) with respect to any taxable year if no loss on a position (including a regulated futures contract) has been sustained during such taxable year or if the only loss sustained on such position is a loss described in subclause (II). "(b) CHARACTER OF GAJN OR Loss; WASH SALES.—Under regulations prescribed by the Secretary, in the case of gain or loss with respect to any position of a straddle, rules which are similar to the rules of subsections (a) and (d) of section 1091 and of subsections (b) and (d) of section 1233 and which are consistent with the purposes of this section shall apply. "(c) STRADDLE DEFINED.—For purposes of this section— "(1) IN GENERAL.—The term 'straddle' means offsetting positions with respect to personal property. "(2) OFFSETTING POSITIONS.—

"(A) IN GENERAL.—A taxpayer holds offsetting positions with respect to personal property if there is a substantial diminution of the taxpayer's risk of loss from holding any position with respect to personal property by reason of his holding 1 or more other positions with respect to personeil property (whether or not of the same kind).

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