Special rules for options and commodities dealers

Notwithstanding subsection (a)(3)(A), in determining the net earnings from self-employment of any options dealer or commodities dealer, there shall not be excluded any gain or loss (in the normal course of the taxpayer’s activity of dealing in or trading section 1256 contracts) from section 1256 contracts or property related to such contracts.

For purposes of this subsection—

(A) Options dealer The term “options dealer” has the meaning given such term by section 1256(g)(8).

(B) Commodities dealer The term “commodities dealer” means a person who is actively engaged in trading section 1256 contracts and is registered with a domestic board of trade which is designated as a contract market by the Commodities Futures Trading Commission.

(C) Section 1256 contracts The term “section 1256 contract” has the meaning given to such term by section 1256(b).