Option Tax Reform Act of 1984

Option Tax Reform Act of 1984 - Amends the Internal Revenue Code to revise the taxation of options. Revises the definition of regulated futures contracts to include any dealer option and any nonequity option. Defines the following terms: (1) listed option contract; (2) nonequity option; (3) options dealer; and (4) dealer option. Specifies that the provisions dealing with regulated futures contracts shall not affect the determination of whether a taxpayer is engaged in the trade or business of trading the underlying property or is a dealer in such property for purposes of provisions dealing with losses from wash sales of stock or securities.

Revises rules with respect to the termination or transfer of interests in regulated futures contracts. Sets forth special rules for the treatment of option market makers.

Sets forth rules for the tax treatment of gain or loss in the case of a cash settlement option and a commodity option.

Requires the Secretary of the Treasury to prescribe regulations to allow a taxpayer to designate positions (whether or not offsetting) to a special mixed straddle account.

Empowers the Tax Court to issue a declaratory judgment relating to the status of certain option contracts as regulated futures contracts.