(B) any partnership or other entity (other than a corporation which is not an S corporation) if more than 35 percent of the losses of such entity during the taxable year are allocable to limited partners or limited entrepreneurs (within the meaning of subsection (k)(4)), and . (ii) Section 461 is amended— (I) by redesignating the second subsection (j) (relating to farming syndicate defined) as subsection (k), and (II) by striking subsection (j) in subsection (i)(4) and inserting subsection (k) . (B) Section 475(d)(1) is amended by striking sections 263(g), 263A, and 1256(a) and inserting sections 263(g) and 263A . (C) Section 988(c)(1) is amended by striking subparagraphs (D) and (E). (D) Section 1212 is amended by striking subsection (c). (E) Section 1223 is amended by striking paragraphs (7) and (14). (F) Section 1281(b)(1)(E) is amended to read as follows: (E) is part of a hedging transaction (as defined in section 1221(b)) or an investment hedging unit (as defined in section 492), or . (G) Section 1402 is amended by striking subsection (i). (H) Section 4982(e)(6)(B) is amended by striking sections 1256 and 1296 and inserting sections 491 and 1296 . (5) Conforming amendments related to repeal of section 1259 Section 475(f)(1) is amended by striking subparagraph (C) and by redesignating subparagraph (D) as subparagraph (C). (b) Other conforming amendments (1) Section 355(g)(2)(B)(i)(V) is amended to read as follows: (V) any derivative (as defined in section 493), . (2) Section 856(n)(4) is amended by inserting or derivatives (as defined in section 493) after securities (as defined in section 475(c)(2)) . (3) Section 857(e)(2)(C)(i) is amended by striking section 860E or 1272 and inserting section 491, 860E, or 1272 . (4) Section 988(d)(1) is amended— (A) by striking or 1256 and inserting or 491 , and (B) by striking 1092, and 1256 and inserting 491, and 1092 . (5) Section 1091(e) is amended to read as follows: (e) Coordination with mark to market of derivatives and underlying investments For purposes of this