Do I need to list EVERY single futures transaction on my 6781 form like I do with stocks, or can I just put down the total gain/loss? I've been detailing every transaction in previous years but I can't seem to find anything about it in the instructions.
Hi Htrader, That's the beauty of futures just list the net gain or loss from each of your brokers. You can get this info from the 1099 your brokers sent you or made available to you. Good Luck, Backwardation
Since IB includes commissions in the 1099 net gain/loss (meaning you have to subtract commissions to get the real net gain/loss), doesn't this create a red flag with the IRS?
Well, surely when seriously managing money you would be maintaining a daily journal, spreadsheet and your own accounting. I have discovered many errors within brokers statements. So adding some pages of addendums to your tax return that I assume you are doing already, really does not mean the difference between "beauty' and the "beast'. Michael B. P.S. The real work is not escaped because you do not need to report it in your return, even though Futures does not require you to declare in detail....
Thanks for the replies Aaron and Backwardation. That makes things easier, now if only IB would actually include commissions in its 1099 futures form.