# Rev. Rul. 88-31: Rev. Rul. 88-31, 1988-1 C.B. 302

IRS guidance. 1988 · Internal Revenue Service.

A contingent payment right whose value varies inversely with the issuer's stock is a cash settlement put option (section 1234). Applies section 1092 to a holder of both the stock and the right: offsetting positions, straddle loss deferral and holding period rules. A holder of only the right is outside section 1092.

Cites 26 U.S.C. § 1092: § 1092(a)(1)(A) (3x), § 1092(c)(1) (3x), § 1092(a) (2x), § 1092(a)(1)(B) (2x), § 1092(d)(1) (2x), § 1092(d)(3)(B)(i)(I) (2x), § 1092(a)(3)(A) (1x), § 1092(b) (1x), § 1092(c)(2)(A) (1x), § 1092(d)(2) (1x), § 1092(d)(3)(B)(I) (1x), § 1092(d)(4)(B) (1x)