[Code of Federal Regulations]
[Title 26, Volume 11]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1256(e)-1]

[Page 501]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
GAIN OR LOSS ON DISPOSITION OF PROPERTY--Table of Contents
 
Sec. 1.1256(e)-1  Identification of hedging transactions.

    (a) Identification and recordkeeping requirements. Under section 
1256(e)(2), a taxpayer that enters into a hedging transaction must 
identify the transaction as a hedging transaction before the close of 
the day on which the taxpayer enters into the transaction.
    (b) Requirements for identification. The identification of a hedging 
transaction for purposes of section 1256(e)(2) must satisfy the 
requirements of Sec. 1.1221-2(f)(1). Solely for purposes of section 
1256(f)(1), however, an identification that does not satisfy all of the 
requirements of Sec. 1.1221-2(f)(1) is nevertheless treated as an 
identification under section 1256(e)(2).
    (c) Consistency with Sec. 1.1221-2. Any identification for purposes 
of Sec. 1.1221-2(f)(1) is also an identification for purposes of this 
section. If a taxpayer satisfies the requirements of Sec. 1.1221-
2(g)(1)(ii), the transaction is treated as if it were not identified as 
a hedging transaction for purposes of section 1256(e)(2).
    (d) Effective date. The rules of this section apply to transactions 
entered into on or after March 20, 2002.

[T.D. 8985, 67 FR 12870, Mar. 20, 2002]