That's my understanding. Check the CME site at www.cme.com. That's where I got my info. Thinking of trading them instead of ETFs, partially for tax purposes. Of course, I have to profit first
I sent a letter to the IRS for clarification on the "Wash Sale" and the ES,NQ Issue, here is their response: My Question: <<I am a individulal trader of securities not claiming Mark to Market status. I trade the E-Mini futures contracts(Globex CME)on a daily basis. 1. Are the E-Mini contracts considered Regulated Futures Contracts ? 2 Are losses on these futures contracts subject to the wash sale rules ? The Answer To Your Question Is: The following are responses to your questions. 1. Are the E-Mini futures contracts considered Regulated Futures Contracts? Yes. As you are aware as a trader of these, E-minis are just that; a smaller version of the electronically traded futures contract. 2. Are losses on these futures contracts subject to the wash sale rules? Yes. There are no special rules for E-minis. You can find information on wash sale rules and other capital gains and losses information in IRS Publication 550, Investment Income and Expenses (Including Capital Gains and Losses) I hope this reply is helpful to you. Have a great day>> I've talked w/ numerous accountants and 1/2 say they are subject to wash sale rules, the other 1/2 say they are not. This IRS person says they are NOT. (However, as we know the IRS is incorrect on explanations over 60% of the time) On page 52 of IRS Pub 550, Chapter 4, Wash Sales,Options and future contracts, it says: (Wash sale rules) "do not apply to losses from sales or trades of commodity future contracts" So... Is the ES and NQ a commodity future contract? If it is, am I correct that they are not subject to Wash sale rules?? Could you please site a reference to back up you opinion Thank You
"So... Is the ES and NQ a commodity future contract? If it is, am I correct that they are not subject to Wash sale rules?? Could you please site a reference to back up you opinion" Plenty of info here: http://www.cftc.gov/cftc/cftcexchproducts.htm No wash sales!
My understanding is that es & nq futures are not subject to wash sales....... My interpretation of Code Sec. 1256(b)..... Generally, the positions are considered sold on the last day of the year (settlement price) for reporting purposes because the exchange uses MTM, regardless of the taxpayers designation. CME/Globex is MTM, thus no wash sale. Later, Cracked