# Treas. Reg. § 1.1234-4: Hedging transactions.

Source: eCFR as of 2026-10-19 <https://www.ecfr.gov/current/title-26/section-1.1234-4>. Interprets 26 U.S.C. § 1234.

The character of gain or loss on an acquired or a written option that is (or is identified as being) part of a hedging transaction is determined under the rules of § 1.1221-2. 

[T.D. 8555, 59 FR 36367, July 18, 1994]