### Question
How is the term commodities derivatives dealer defined?


### Answer
The term **commodities derivatives dealer** is defined in *26 U.S.C. § 1221* as the following:

> a person which [1](#1221_1_target) regularly offers to enter into, assume, offset, assign, or terminate positions in commodities derivative financial instruments with customers in the ordinary course of a trade or business

#### 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**

