Definitions (temporary).

The following definitions apply for purposes of §§ 1.1092(b)-1T through 1.1092(b)-4T.

# (a) Disposing, disposes, or disposed.

The term disposing, disposes, or disposed includes the sale, exchange, cancellation, lapse, expiration, or other termination of a right or obligation with respect to personal property (as defined in section 1092(d)(1)).

# (b) Hedging transaction.

The term hedging transaction means a hedging transaction as defined in section 1256(e).

# (c) Identified straddle.

The term identified straddle means an identified straddle as defined in section 1092(a)(2)(B).

# (d) Loss.

The term loss means a loss otherwise allowable under section 165(a) (without regard to the limitation contained in section 165(f)) and includes a write-down in inventory.

# (e) Mixed straddle.

The term mixed straddle means a straddle—

(1) All of the positions of which are held as capital assets;

(2) At least one (but not all) of the positions of which is a section 1256 contract;

(3) For which an election under section 1256(d) has not been made; and

(4) Which is not part of a larger straddle.

# (f) Non-section 1256 position.

The term non-section 1256 position means a position that is not a section 1256 contract.

# (g) Offsetting position.

The term offsetting position means an offsetting position as defined in section 1092(c)(2).

# (h) Position.

The term position means a position as defined in section 1092(d)(2).

# (j) Related person or flowthrough entity.

The term related person or flowthrough entity means a related person or flowthrough entity as defined in sections 1092(d)(4) (B) and (C) respectively.

# (k) Section 1256 contract.

The term section 1256 contract means a section 1256 contract as defined in section 1256(b).

# (m) Straddle.

The term straddle means a straddle as defined in section 1092(c)(1).

# (n) Successor position.

The term successor position means a position (“P”) that is or was at any time offsetting to a second position if—

(1) The second position was offsetting to any loss position disposed of; and

(2) P is entered into during a period commencing 30 days prior to, and ending 30 days after, the disposition of the loss position referred to in paragraph (n)(1) of this section.

# (o) Unrecognized gain.

The term unrecognized gain means unrecognized gain as defined in section 1092(a)(3)(A).

# (p) Substantially identical.

The term substantially identical has the same meaning as substantially identical in section 1091(a).

# (q) Securities.

The term security means a security as defined in section 1236(c).

[T.D. 8007, 50 FR 3321, Jan. 24, 1985, as amended by T.D. 8070, 51 FR 1788, Jan. 15, 1986]