How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Shane-CPA Your Own Question
Shane-CPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 265
Experience:  Shane Northrop is a Certified Public Accountant, Personal Financial Specialist and a Chartered Global Management Accountant
Type Your Tax Question Here...
Shane-CPA is online now
A new question is answered every 9 seconds

I have $120,000 in commodity futures trading profits. That

This answer was rated:

I have $120,000 in commodity futures trading profits. That is what my 1099 said. Is that considered ordinary income or can a portion be considered capital gains?

Shane-CPA : name is XXXXX XXXXX I am a Certified Public Accountant. I look forward to assisting you.

Shane-CPA :

The commodity futures will be taxed according to Section 1256 of the Internal Revenue Code in which 60% of the profits will be taxed as long-term capital gains and 40% will be taxed as short-term capital gains.


Thank you. This is good news!!

Shane-CPA :

You're very welcome! Please let me know if I can provide you with any assistance in the future. If you are completely satisfied with the service I provided you, please provide me with positive feedback so I may receive credit for my response. I thank you for using Just Answer and hope you have a great day!


Will do.

Shane-CPA and 2 other Tax Specialists are ready to help you