Newbie question here for all you experienced in reporting futures trades on schedule D. So, for example on ER2 if I buy 1 contract at $633 do I report $633 or $63300 in the cost column? In other words should I use the multiplier or not? thanks
A. I hope you filed an extension. B.You need only report the YEAR END NET RESULT of the account on form 6781 first and then schedule D. http://www.elitetrader.com/vb/showt...perpage=6&highlight=section 1256&pagenumber=1 You can also do a search on section 1256 contracts taxation on here or GOOGLE.
Neither. You make the initial entry on Form 6781. You then transfer 40% as a short term capital gain/loss to your Schedule D and the other 60% as a long term capital gain. Futures are reported as a net gain or loss by your broker on a 1099 form. Detailed sales are not required to be reported as they are in stocks. If you are long or short at the end of the year the position is "marked-to-market" at the close of business and that amount is added to your closed positions profit/loss. Let's say you traded during the year and had a net profit of $50,000 on your closed positions. On December 31st you are long 1 contract. You bought it at $750.00 ($75,000). It closes at $700.00 ($70,000). The broker will subtract the $5,000 open position loss from the $50,000 and report a $45,000 gain on your 1099. Depending on your broker, commissions may be shown on a separate line or included the total. Jack.