### Question
How is the "commodities derivative financial instrument" defined?


### Answer
The term **commodities derivative financial instrument** is defined in *26 U.S.C. § 1221* as follows -

> any contract or financial instrument with respect to commodities ( [2](#1221_2_target) other than a share of stock in a corporation, a beneficial interest in a partnership or trust, a note, bond, debenture, or other evidence of indebtedness, or a section 1256 contract (as defined in section 1256(b)), the value or settlement price of which is calculated by or determined by reference to a specified index

#### Citation:
  - *26 U.S.C. § 1221*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART III-GENERAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES**

