26 C.F.R. § 1.1233-2 Hedging transactions.
Title 26 - Internal Revenue
The character of gain or loss on a short sale that is (or is identified as being) part of a hedging transaction is determined under the rules of §1.1221–2. [T.D. 8555, 59 FR 36367, July 18, 1994]
Title 26: Internal Revenue
PART 1—INCOME TAXES
Special Rules for Determining Capital Gains and Losses
§ 1.1233-2 Hedging transactions.