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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10131
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I had an unrealized profit on futures on my 1099B line 10,

Customer Question

I had an unrealized profit on futures on my 1099B line 10, regulated futures contract
My unrealized profit was $25,399, my positions closed in 2015, the next year, at a loss.
Do I need to pick up this 25,399 gain in 2014 even though it is unrealized ?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.
My understanding is that one is only taxed on Realized Profits so if you enter the line 12 amount from the 1099-B you will be overstating the gains, as it contains the sum of the Realized and Unrealized profits. One reports the realized profits in Part 1 of Form 6781 and the unrealized profits in part 3 as a memo entry, which is not taxed..
Expert:  Lane replied 1 year ago.
Hi,
... just checking back in to see if you saw the answer.
to recap,
No, only realized gains are taxable.
Amounts on line 10 aren't taxable.
.
Let me know if you have questions...
.
Lane
Customer: replied 1 year ago.
Thanks, ***** ***** answer I needed
Expert:  Lane replied 1 year ago.
Great,If this HAS helped, I would appreciate a positive rating (using the stars or smiley faces on your screen)… That’s the ONLY WAY I'll be credited for the work here, Thanks! .Lane

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