§ 1092(a)(2)(A)(iii)

a permitted basis increase

UNDECIDED

0 of 2 settled

  1. 1

    § 1092(a)(2)(A)(iii)

    ALL OF

    if the application of clause (ii) does not result in an increase in the basis of any offsetting position in the identified straddle, the basis of each of the offsetting positions in the identified straddle shall be increased in a manner which—

    “In the case of any straddle which is an identified straddle” Enclosing § 1092(a)(2)(A) needs Step 2 an identified straddle UNDECIDED
    “is reasonable, consistent with the purposes of this paragraph, and consistently applied by the taxpayer, and” § 1092(a)(2)(A)(iii)(I)

    “Reasonable” implies facts and circumstances. No regulation cites this provision (eCFR, Oct 19, 2026)

    “results in an aggregate increase in the basis of such offsetting positions which is equal to the loss described in clause (ii), and” § 1092(a)(2)(A)(iii)(II)
    Research 1
  2. 2

    § 1092(a)(2)(B)

    an identified straddle

    ALL OF

    The term “identified straddle” means any straddle—

    “which is clearly identified on the taxpayer’s records as an identified straddle before the earlier of— the close of the day on which the straddle is acquired, or such time as the Secretary may prescribe by regulations.” § 1092(a)(2)(B)(i)

    “As the Secretary may prescribe” leaves this to Treasury. No regulation cites this provision (eCFR, Oct 19, 2026)

    “to the extent provided by regulations, the value of each position of which (in the hands of the taxpayer immediately before the creation of the straddle) is not less than the basis of such position in the hands of the taxpayer at the time the straddle is created, and” § 1092(a)(2)(B)(ii)

    “To the extent provided by regulations” leaves this to Treasury. No regulation cites this provision (eCFR, Oct 19, 2026)

    “which is not part of a larger straddle.” § 1092(a)(2)(B)(iii)
    Research 1

    A straddle shall be treated as clearly identified for purposes of clause (i) only if such identification includes an identification of the positions in the straddle which are offsetting with respect to other positions in the straddle.

    Research 1