tax straddle rule

tax straddle rule
The commodities straddle rule prevents a taxpayer from deferring income by requiring a loss on an identified straddle to be recognized when the offsetting position is closed. The straddle rules generally relate to intangibles such as rights to future events in contrast to more tangible assets such as stock.
See I.R.C. No.No. 165(cX2), 1092

Black's law dictionary. . 1990.

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