[Code of Federal Regulations]
[Title 26, Volume 11]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1092(d)-2]

[Page 235]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1092(d)-2  Personal property.

    (a) Special rules for stock. Under section 1092(d)(3)(B), personal 
property includes any stock that is part of a straddle, at least one of 
the offsetting positions of which is a position with respect to 
substantially similar or related property (other than stock). For 
purposes of this rule, the term substantially similar or related 
property is defined in Sec. 1.246-5 (other than Sec. 1.246-5(b)(3)). 
The rule in Sec. 1.246-5(c)(6) does not narrow the related party rule 
in section 1092(d)(4).
    (b) Effective date--(1) In general. This section applies to 
positions established on or after March 17, 1995.
    (2) Special rule for certain straddles. This section applies to 
positions established after March 1, 1984, if the taxpayer substantially 
diminished its risk of loss by holding substantially similar or related 
property involving the following types of transactions--
    (i) Holding offsetting positions consisting of stock and a 
convertible debenture of the same corporation where the price movements 
of the two positions are related; or
    (ii) Holding a short position in a stock index regulated futures 
contract (or alternatively an option on such a regulated futures 
contract or an option on the stock index) and stock in an investment 
company whose principal holdings mimic the performance of the stocks 
included in the stock index (or alternatively a portfolio of stocks 
whose performance mimics the performance of the stocks included in the 
stock index).

[T.D. 8590, 60 FR 14641, Mar. 20, 1995]

                        capital gains and losses

                       Treatment of Capital Gains