Page:United States Statutes at Large Volume 98 Part 1.djvu/670

 98 STAT. 622

PUBLIC LAW 98-369—JULY 18, 1984 1256 contracts related to such property shall not be taken into account. "(4) SPECIAL RULE FOR DEALER EQUITY OPTIONS OF LIMITED

PARTNERS OR LIMITED ENTREPRENEURS.—In the case of any gain or loss with respect to dealer equity options which are allocable to limited partners or limited entrepreneurs (within the meaning of subsection (e)(3))— "(A) paragraph (3) of subsection (a) shall not apply to any such gain or loss, and "(B) all such gains or losses shall be treated as short-term capital gains or losses, as the case may be." (c) APPLICATION OF SELF-EMPLOYMENT INCOME TAX TO OPTIONS AND COMMODITIES DEALERS.— (1) AMENDMENT TO THE INTERNAL REVENUE CODE OF 1954.—

26 USC 1402.

Section 1402 (relating to definitions for tax on self-employment income) is amended by adding at the end thereof the following new subsection: "(i) SPECIAL RULES FOR OPTIONS AND COMMODITIES DEALERS.—

Ante, p. 620.

Ante, p. 620.

"(1) IN GENERAL.—In determining the net earnings from selfemployment of any options dealer or commodities dealer— "(A) notwithstanding subsection (a)(3)(A), there shall not be excluded any gain or loss (in the normal course of the taxpayer's activity of dealing in or trading section 1256 contracts) from section 1256 contracts or property related to such contracts, and "(B) the deduction provided by section 1202 shall not apply. "(2) DEFINITIONS.—For purposes of this subsection— "(A) OPTIONS DEALER.—The term 'options dealer' has the meaning given such term by section 1256(g)(8). "(B) COMMODITIES DEALER.—The term 'commodities dealer' means a person who is actively engaged in trading section 1256 contracts and is registered with a domestic board of trade which is designated as a contract market by the Commodities Futures Trading Commission. "(C) SECTION 1256 CONTRACTS.—The term 'section 1256 contract' has the meaning given to such term by section 1256(b)." (2) AMENDMENT TO THE SOCIAL SECURITY ACT.—Section 211 of

42 USC 411.

26 USC 1256. 26 USC 1202. Ante, p. 620.

the Social Security Act is amended by adding at the end thereof the following new subsection: "(h)(1) In determining the net earnings from self-employment of any options dealer or commodities dealer— "(A) notwithstanding subsection (a)(3)(A), there shall not be excluded any gain or loss (in the normal course of the taxpayer's activity of dealing in or trading section 1256 contracts) from section 1256 contracts or property related to such contracts, and "(B) the deduction provided by section 1202 of the Internal Revenue Code of 1954 shall not apply. "(2) For purposes of this subsection— "(A) The term 'options dealer' has the meaning given such term by section 1256(g)(8) of such Code. "(B) The term 'commodities dealer' means a person who is actively engaged in trading section 1256 contracts and is registered with a domestic board of trade which is designated as a contract market by the Commodities Futures Trading Commission.

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