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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 11603
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.
... 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...
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