Page:United States Statutes at Large Volume 96 Part 2.djvu/1025

 PUBLIC LAW 97-448—JAN. 12, 1983

96 STAT. 2387

date of the enactment of this Act. Any such action, once taken, shall be irrevocable. (VI) DEFINITIONS.—For purposes of this clause, the terms "regulated futures contract" and "foreign currency contract" have the same respective meanings as when used in section 1256 of the Internal Revenue Code of 1954 (as amended by this Act), (iii) ELECTION BY TAXPAYER WITH RESPECT TO POSITIONS HELD D U R I N G TAXABLE YEARS ENDING AFTER MAY 11,

1982.—In lieu of the election under clause (ii), a taxpayer may elect to have the amendments made by subparagraphs (B) and (C) applied to all positions held in taxable years ending after May 11, 1982, except that the provisions of section 509(a)(3) and (4) of the Economic Recovery Tax Act of 1981 shall not apply. (6) CLARIFICATION OF EXTENSION.—Paragraph (3) of section

509(b) of the Economic Recovery Tax Act of 1981 is amended to read as follows: "(3) the fair market value on the last business day of the preceding taxable year for each regulated futures contract described in paragraph (2), and". (7) CLERICAL AMENDMENT.—Subparagraph (A) of section 1212(c)(4) (defining net commodities futures loss) is amended by striking out "and positions to which section 1256 applies". (d) AMENDMENT RELATED TO SECTION 506.—

26 USC 1256 ^°^-

26 USC 1212. 95 Stat. 332.

(1) REQUIREMENT THAT OPTIONS BE DESIGNATED AS HELD FOR

INVESTMENT.—Section 1236 (relating to dealers in securities) is 26 USC 1236. amended by adding at the end thereof the following new subsection: "(e) SPECIAL RULE FOR OPTIONS.—For purposes of subsection (a), any security acquired by a dealer pursuant to an option held by such dealer may be treated as held for investment only if the dealer, before the close of the day on which the option was acquired, clearly identified the option on his records as held for investment. For purposes of the preceding sentence, the term 'option' includes the right to subscribe to or purchase any security." (2) EFFECTIVE DATE.—The amendment made by paragraph (1) 26 USC 1236 shall apply to securities acquired after September 22, 1982, in "°**taxable years ending after such date. (e) AMENDMENT RELATED TO SECTION 507.—Section 1234A (relating 95 Stat. 333. to gains or losses from certain terminations) is amended to read as ^^ ^ ^ 1234A. follows: "SEC. 1234A. GAINS OR LOSSES FROM CERTAIN TERMINATIONS.

"Gain or loss attributable to the cancellation, lapse, expiration, or other termination of— "(1) a right or obligation with respect to personal property (as defined in section 1092(d)(l)) which is (or on acquisition would be) a capital asset in the hands of the taxpayer, or "(2) a regulated futures contract (as defined in section 1256) not described in paragraph (1) which is a capital asset in the hands of the taxpayer, shall be treated as gain or loss from the sale of a capital asset." SEC. 106. AMENDMENTS RELATED TO TITLE VI OF THE ACT. (a) AMENDMENTS RELATED TO SECTION 601.—

95 Stat. 335.

(1) PRODUCTION FROM TRANSFERRED PROPERTY.—Paragraph (3)

of section 6429(d) (relating to production from transferred property) is amended by striking out subparagraph (D). 97-200 O—84—pt. 2

3.3: QL3

26 USC 6429.

�