988 transactions
From Wikipedia, the free encyclopedia
An IRC 988 transaction is when you enter into or acquire any forward contract, futures contract, option, or similar financial instrument.... except it shall not apply to any regulated futures contract or non-equity options which would be marked to market under section 1256 (1256 contract) if held on the last day of the taxable year.
The gain or loss is treated as ordinary income or loss unless an election is made to treat it as capital.
