118 STAT. 1643 PUBLIC LAW 108–357—OCT. 22, 2004 (4) CONFORMING AMENDMENT.—Section 1092(c)(2) is amended by striking subparagraph (B) and by redesignating subparagraph (C) as subparagraph (B). (b) PHYSICALLY SETTLED POSITIONS.—Section 1092(d) (relating to definitions and special rules) is amended by adding at the end the following new paragraph: ‘‘(8) SPECIAL RULES FOR PHYSICALLY SETTLED POSITIONS.— For purposes of subsection (a), if a taxpayer settles a position which is part of a straddle by delivering property to which the position relates (and such position, if terminated, would result in a realization of a loss), then such taxpayer shall be treated as if such taxpayer— ‘‘(A) terminated the position for its fair market value immediately before the settlement, and ‘‘(B) sold the property so delivered by the taxpayer at its fair market value.’’. (c) REPEAL OF STOCK EXCEPTION.— (1) IN GENERAL.—Paragraph (3) of section 1092(d) (relating to definitions and special rules) is amended to read as follows: ‘‘(3) SPECIAL RULES FOR STOCK.—For purposes of paragraph (1)— ‘‘(A) IN GENERAL.—In the case of stock, the term ‘per sonal property’ includes stock only if— ‘‘(i) such stock is of a type which is actively traded and at least 1 of the positions offsetting such stock is a position with respect to such stock or substantially similar or related property, or ‘‘(ii) such stock is of a corporation formed or availed of to take positions in personal property which offset positions taken by any shareholder. ‘‘(B) RULE FOR APPLICATION.—For purposes of deter mining whether subsection (e) applies to any transaction with respect to stock described in subparagraph (A)(ii), all includible corporations of an affiliated group (within the meaning of section 1504(a)) shall be treated as 1 tax payer.’’. (2) CONFORMING AMENDMENT.—Section 1258(d)(1) is amended by striking ‘‘; except that the term ‘personal property’ shall include stock’’. (d) HOLDING PERIOD FOR DIVIDEND EXCLUSION.—The last sen tence of section 246(c) is amended by inserting: ‘‘, other than a qualified covered call option to which section 1092(f) applies’’ before the period at the end. (e) EFFECTIVE DATE.—The amendments made by this section shall apply to positions established on or after the date of the enactment of this Act. SEC. 889. ADDITION OF VACCINES AGAINST HEPATITIS A TO LIST OF TAXABLE VACCINES. (a) IN GENERAL.—Paragraph (1) of section 4132(a) (defining taxable vaccine) is amended by redesignating subparagraphs (I), (J), (K), and (L) as subparagraphs (J), (K), (L), and (M), respectively, and by inserting after subparagraph (H) the following new subpara graph: ‘‘(I) Any vaccine against hepatitis A.’’. (b) EFFECTIVE DATE.— 26 USC 4132 note. 26 USC 246 note.
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