futures trading tax question

Discussion in 'Taxes and Accounting' started by vrodtrader, Jan 30, 2004.

  1. Hi,

    I read somewhere that 60% of the gains from futures trading are taxed as long term capital gains. Is that correct?

  2. Quah


  3. Another question... Do futures gains/losses offset equities gains/losses? Or can you only match futures with futures and equities with equities?
  4. pspr


    Yes to the first question.

    No to the second.

  5. Thanks...
  6. Alright... say if someone makes 100K profit in futures trading at 30% tax rate which is 30K and 60% of 30K is spread over the number of years and 40% of 30K is due immediately. Is that correct?

  7. I don't think it's spread over a number of years; instead you just pay the long-term capital gains tax rate, which I believe is around 15% or so.

    So, $100K profit. $60K would be taxed at 15%; and $40K would be taxed at 30% or whatever your income bracket is.