commodity hedging transaction
(5) Definition and special rules relating to commodity transactions (A) Commodity hedging transactions For purposes of paragraph (1)(C)(i), the term “commodity hedging transaction” means any transaction with respect to a commodity if such transaction— (i) is a hedging transaction as defined in section 1221(b)(2), determined— (I) without regard to subparagraph (A)(ii) thereof, (II) by applying subparagraph (A)(i) thereof by substituting “ordinary property or property described in section 1231(b)” for “ordinary property”, and (III) by substituting “controlled foreign corporation” for “taxpayer” each place it appears, and (ii) is clearly identified as such in accordance with section 1221(a)(7). (B) Treatment of dealer activities under paragraph (1)(C) Commodities with respect to which gains and losses are not taken into account under paragraph (2)(C) in computing a controlled foreign corporation’s foreign personal holding company income shall not be taken into account in applying the substantially all test under paragraph (1)(C)(ii) to such corporation. (C) Regulations The Secretary shall prescribe such regulations as are appropriate to carry out the purposes of paragraph (1)(C) in the case of transactions involving related parties.
26 USC § 954(c)(5)
None identified, default scope is assumed to be the parent (subpart F) of this section.