; underlying investment (1) Derivative The term derivative has the meaning given such term under section 59A(h)(4). (2) Underlying investment The term underlying investment means, with respect to any derivative, any item— (A) which is described in clauses (i) through (v) of section 59A(h)(4)(A) (or any item substantially the same as any such item), and (B) by reference to which the value of the derivative, or any payment or other transfer with respect to the derivative, is determined either directly or indirectly. (d) Regulatory authority To prevent avoidance and To coordinate with other provisions of this title The Secretary shall issue such regulations or other guidance as are necessary to— (1) prevent taxpayers from avoiding the application of this part, and (2) coordinate the provisions of this part with other provisions of this title which require taxpayers to take income into account in the absence of a payment or other distribution. . (b) Clerical amendment The table of parts for subchapter E of chapter 1 is amended by adding at the end the following new item: Part IV. Elimination of deferral for applicable taxpayers. . (c) Effective date The amendments made by this section shall apply to taxable events and applicable transfers occurring in taxable years beginning after December 31, 2023. 102. Carryback of capital losses attributable to mark-to-market rules (a) In general Section 1212 is amended by adding at the end the following new subsection: (d) Carryback of losses of applicable taxpayers from assets marked to market (1) In general If an applicable taxpayer elects to have this subsection apply to any taxable year in which the taxpayer has a net marked-to-market loss (in this subsection referred to as the loss year) , the amount of such net marked-to-market loss— (A) shall be a carryback to each of the 3 taxable years preceding the loss year, and (B) to the extent that, after the application of paragraphs (2) and (3), such loss is allowed as a carryback to any such preceding taxable year, the amount so