United States IRC sections
Statute section
IRC section 988
Treatment of certain foreign currency transactions
Country
United States
Section
988
Updated
2026-05-20
Operative text
Section 988 governs the U.S. tax treatment of foreign-currency-denominated transactions, generally treating gain or loss as ordinary income. An election under Section 988(a)(1)(B) is available for forward, futures, and option contracts in major currencies traded through regulated futures contracts to obtain Section 1256 capital-gain treatment.
Cross-references
26 U.S.C. 125626 U.S.C. 1257
Related guides
Primary sources
- 26 U.S.C. section 988Verified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.