principal contracts and all instruments referenced to commodities), there shall not be taken into account in computing passive income any item of income, gain, deduction, or loss from any transaction (including hedging transactions and transactions involving physical settlement) entered into in the ordinary course of such dealer's trade or business as such a dealer. (3) Look-thru rule for certain partnership sales (A) In general In the case of any sale or exchange by a controlled foreign corporation of an interest in a partnership with respect to which such corporation is a 25-percent owner, gain or loss on such sale shall be treated as being described in paragraph (1)(B)(ii) in the amount which bears the same ratio to the amount of such gain or loss as the controlled foreign corporation's distributable share of passive income from the partnership over the applicable period (as defined in section 953(b)(4)(A)(ii)) bears to the controlled foreign corporation's distributable share of gross income from the partnership over such period. The Secretary shall prescribe such regulations as may be appropriate to prevent abuse of the purposes of this paragraph, including regulations providing for the coordination of this paragraph with the provisions of subchapter K. (B) 25-Percent owner For purposes of this paragraph, the term 25-percent owner has the meaning given such term under section 953(b)(4)(B). (4) 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