Have a Tax Question? Ask a Tax Expert
Hello...my name is XXXXX XXXXX I am a Certified Public Accountant. I look forward to assisting you with your tax question.
Futures are taxed according to IRS Code Section 1256 which treats gains and losses as a split for tax purposes as 60% long-term capital gains and 40% short-term capital gains regardless of holding period.
What you are describing is a common situation for traders who make a significant amount of profits in one year only to lose them in the first few months of the next year.
I know that, what I want to know is this the right form and is there any way to do my tax's over for 2011 so I do not have to pay on money I never made I know you can write off the loss $3,000.00 a year but it will take for ever and claiming that gain put me in a real high tax bracket
I am checking on the capital loss rules to see if they will allow carryback to prior years...one moment...
Were you trading futures using a company or in your individual name?
in my name and my husbands no company
Unfortunately, capital loss rules only allow carry forward to future years (not to prior years)...your only hope would be to possibly look into showing that you were operating as a sole-proprietorship to see if you could obtain a net operating loss carryback for a company...however...that may be a tough argument to support...
so my accountant is doing this right you pay on what is there at the close Dec 31 of the year wheather you end up with that or not?? and this is the right form for futures6781
That's Correct...in the following year you will have a capital loss as you mentioned which will carry-forward...I know it doesn't help you much for the prior year...it is a common problem for many traders...
everything at 12/31 is mark-to-market with futures...
is it still only $3,000.00 a year to use as a loss
unless you have capital gains in future years...so if you make money in investments in the future...it will offset those amounts on a dollar-for-dollar basis at no limit
thanks alot have a great new year
thank you...you as well
have a great evening!