I am assuming that ES emini futures fall under the 60/40 long/short taxes rule. If I recall, the maximum deduction each year with stocks if $3000. I read an article concerning the potential losses that an individual can take off of their taxes with futures. However, the verbiage made mention concerning past year futures gains. With that being said if there was neither losses or gains last year (2008) any losses that I incur for 2009 will be tax deductible? OR Is it that losses from 2009 will not be tax deductible because there were no futures 2008 gains? Personal account. Non retirement.
Can you please restate your question in plain ENGLISH? You may deduct up to $3,000/year in capital losses, and carry over the rest. (Includes 1256 contracts) TAX year 2008 gets filed by April 15, 2009... I would not be concerned with 2009 until next year. WHAT are you asking?
If you have losses from FUTURES trading on a 1256 contracts on your tax return, are they taken off of your income? I read that FUTURES traders can only take off past income from FUTURES profits. Therefore, if this is your first year trading FUTURES, and you have a loss, is it deductable? Or is it only deductable as long as the prior year you had FUTURES gains? $3000 is for stocks, but is it also the same for futures? I thought futures can have unlimited loss?
Please read the directions for Form 6781 and Schedule D. Once your futures losses are transferred from Form 6781 to Schedule D they are treated exactly the same as any other investment losses.
On the 1099-B or brokerage form that the firm sends to the IRS, is the P/L including commissions paid which can be substantial or is there another section for that?
Mark to market includes commissions. The commission is part of the basis. So, your year end form from your futures broker which shows, in your case a loss, includes transaction fees. The issue is, you can only deduct 3000 of capital losses per year, unless your trading is ordinary income, but that involves a different status.