Futures Trades Reporting - IRS

Discussion in 'Taxes and Accounting' started by jtmarlin, Feb 27, 2007.

  1. jtmarlin

    jtmarlin

    Hey: Can some please refresh my memory. Where are e-mini future trades reported to the IRS. I don't see them on the Schedule D from IB, is it just the P/L listed on the 1099?

    Thx
    JT
     
  2. Surdo

    Surdo

  3. JackR

    JackR

    You remember correctly.

    Using the forms above you report the 1099 number with the 60/40 split.


    Jack
     
  4. greeks

    greeks

    2006 was the first year I traded ES and had loss (more than $3000). My question is that how can I file the loss as ordinary loss instead of long/short term loss?

    Tom
     
  5. JackR

    JackR

    Tom:

    You question is a little unclear.

    I'm assuming your are not, per IRS conventions, a "Trader".

    If 2006 was the first year you both traded futures and lost money there is nothing you can do except apply the 60/40 split on your Schedule D. The short-term portion is effectively applied against your regular income as it gets deducted from your short-term capital gains. They are taxed at your regular income rate. If you had no other trading, the loss, up to a $3,000 maximum, is applied against regular income.

    The long-term portion is applied to long-term gains, if any.

    In both cases, any unused portion of the loss is carried forward to future years.

    If you traded futures in 2005 and filed a 6781 form that showed a profit, then you can carryback this year's loss to last year's 6781, whether or not you are a "trader". You have to check one of the boxes up top on the 6781 to do so.

    You then file a revised 6781/1040 for 2005 for a refund.

    I'm not an accountant or tax advisor and this is ET, so take this information and investigate further.

    Jack