### Question
How is the "forward contract" defined?


### Answer
The term **forward contract** is defined in *26 U.S.C. § 1260* as follows -

> any contract to acquire in the future (or provide or receive credit for the future value of) any financial asset

#### Citation:
  - *26 U.S.C. § 1260*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART IV-SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES**

