CFR /  Title 26  /  Part 1  /  Sec. 1.1233-2 Hedging transactions.

The character of gain or loss on a short sale that is (or is identified as being) part of a hedging transaction is determined under the rules of Sec. 1.1221-2. [T.D. 8555, 59 FR 36367, July 18, 1994]