Briefings

TAX POLICY: IRS Issues Final Mixed Straddle Rules

We wanted to let you know that the Internal Revenue Service issued final regulations on Thursday, July 17, 2014, concerning the treatment of unrealized investment gains and losses in so-called mixed straddle deals. A “mixed straddle” is a combination of positions in futures contracts with offsetting gains and losses. The final rule requires taxpayers to account for the gains and losses from the futures contracts as though their subsequent offset investments don't exist. The IRS said the final rules will be effective July 18, 2014, but will only apply to straddles established after Aug. 18, 2014.
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