Sections 1.1254-1 through 1.1254-3 and Sec. 1.1254-5 are effective with respect to any disposition of natural resource recapture property occurring after March 13, 1995. The rule in Sec. 1.1254-1(b)(2)(iv)(A)(2), relating to a nonoperating mineral interest carved out of an operating mineral interest with respect to which an expenditure has been deducted, is effective with respect to any disposition occurring after March 13, 1995 of property (within the meaning of section 614) that is placed in service by the taxpayer after December 31, 1986. Section 1.1254-4 applies to dispositions of natural resource recapture property by an S corporation (and a corporation that was formerly an S corporation) and dispositions of S corporation stock occurring on or after October 10, 1996. Sections 1.1254-2(d)(1)(ii) and 1.1254-3 (b)(1) (i) and (ii) and (d)(1) (i) and (ii) are effective for dispositions of property occurring on or after October 10, 1996. [T.D. 8586, 60 FR 2508, Jan. 10, 1995, as amended by T.D. 8684, 61 FR 53066, Oct. 10, 1996] Sec. 1.1256(e)-1 Identification of hedging transactions.
(a) Identification and recordkeeping requirements. Under section 1256(e)(2), a taxpayer that enters into a hedging transaction must identify the transaction as a hedging transaction before the close of the day on which the taxpayer enters into the transaction.
(b) Requirements for identification. The identification of a hedging transaction for purposes of section 1256(e)(2) must satisfy the requirements of Sec. 1.1221-2(f)(1). Solely for purposes of section 1256(f)(1), however, an identification that does not satisfy all of the requirements of Sec. 1.1221-2(f)(1) is nevertheless treated as an identification under section 1256(e)(2).
(c) Consistency with Sec. 1.1221-2. Any identification for purposes of Sec. 1.1221-2(f)(1) is also an identification for purposes of this section. If a taxpayer satisfies the requirements of Sec. 1.1221-2(g)(1)(ii), the transaction is treated as if it were not identified as a hedging transaction for purposes of section 1256(e)(2).
(d) Effective date. The rules of this section apply to transactions entered into on or after March 20, 2002. [T.D. 8985, 67 FR 12870, Mar. 20, 2002; 67 FR 31955, May 13, 2002]