Page:United States Statutes at Large Volume 96 Part 2.djvu/1023

 PUBLIC LAW 97-448—JAN. 12, 1983

96 STAT. 2385

shall apply to any regulated futures contract and any other position making up such straddle." (4) CLERICAL AMENDMENT.—Subparagraph (C) of section 1092(c)(2) (relating to offsetting positions) is amended by striking out "subsection (a)(BXB)" and inserting in lieu thereof "subsection (a)(2)(B)". (b) AMENDMENTS RELATED TO SECTION 502.— (1) IN GENERAL.—Clause (ii) of section 263(g)(2)(A) (defining interest and carrying charges) is amended to read as follows: "(ii) all other amounts (including charges for temporary use of the personal property in a short sale, or to insure, store, or transport the personal property) paid or incurred to carry the personal property, over". (2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply to property acquired, and p>ositions established, by the taxpayer after September 22, 1982, in taxable years ending after such date. (c) AMENDMENTS RELATED TO SECTION 503.—

26 USC 1092. 95 Stat. 327. 26 USC 263.

26 USC 263 note,

95 Stat. 327.

(1) TRANSFERS OF RIGHTS AND OBLIGATIONS.—Subsection (c) of

section 1256 (relating to regulated futures contracts marked to 26 USC 1256. market) is amended to read as follows: "(c) TERMINATIONS, ETC.—

"(1) IN GENERAL.—The rules of paragraphs (1), (2), and (3) of subsection (a) shall also apply to the termination (or transfer) during the taxable year of the taxpayer's obligation (or rights) with respect to a regulated futures contract by offsetting, by taking or making delivery, or otherwise, "(2) SPECIAL RULE WHERE TAXPAYER TAKES DEUVERY ON PART OF STRADDLE.—If—

"(A) 2 or more regulated futures contracts are part of a straddle (as defined in section 1092(c)), and "(B) the taxpayer takes delivery under any of such contracts, then, for purposes of this section, each of the other such contracts shall be treated as terminated on the day on which the taxpayer took delivery. "(3) FAIR MARKET VALUE TAKEN INTO ACCOUNT.—For purposes

of this subsection, fair market value at the time of the termination (or transfer) shall be taken into account." (2) IDENTIFICATION OF MIXED STRADDLES.—Subparagraph (B) of

section 1256(d)(4) (defining mixed straddles) is amended by striking out "such position" and inserting in lieu thereof "the first regulated futures contract forming part of the straddle". (3)

ACTIVE MANAGEMENT WITH RESPECT TO SYNDICATES.—

Clause (v) of section 1256(e)(3)(C) is amended by inserting "(by regulations or otherwise)" after "determines". (4) HOLDING PERIOD.—Paragraph (8) of section 1223 (relating 26 USC 1223. to holding period of property) is amended by inserting "(other than a commodity futures contract to which section 1256 applies)" after "commodity futures contract" the first place it appears. (5) FOREIGN CURRENCY AND CASH SETTLEMENT CONTRACTS MARKED TO MARKET,— (A) CASH SETTLEMENT CONTRACTS.—Subsection (b) of sec-

tion 1256 (defining regulated futures contract) is amended by striking out paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively.

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