After the Internal Revenue Service lost in the Tax Court in 1993 on the issue of whether hedges produced capital gain or loss treatment, the Department of the Treasury issued temporary and proposed regulations abandoning its position. The Service and the Treasury in the regulations agreed that most hedging transactions are properly considered to produce ordinary gains and losses. The regulations have now been made final with a few modifications from the regulations as proposed.
"Final Regulations on Hedging,"
Agricultural Law Digest: Vol. 5
, Article 1.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol5/iss18/1