Can anyone give a link where it states that i dont have to break down every YM trade i do for the year when filling my taxes? My account told me i still have to list every single trade with p/l even though its e-mini futures.... i thought that was only for stock trades... all i trade now is YM.... blows if i still gotta list every transaction!
This came up recently and I believe I read somewhere that futures trades just require a net profit or loss as a line item somewhere. I think it is in this month's Active Trader magazine in an article written by that GreenTraderTax guy.
Just list the net amount, 1256 contracts are filed with the net amount on IRS Form 6781 and then lines 4 and 11 on IRS Schedule D with a 60/40 treatment on Cap. gains.
Is this person a CPA or just an accountant? A CPA should definitely know better. If he doesn't know how to report those trades correctly, then also he might not know how they should be taxed (i.e., 60 percent long-term capital gains / 40 percent short-term). Assuming you haven't made the MTM declaration for commodities (which would be bad unless you lost money for the year), you might end up paying 100 percent short-term (ordinary income) rates if he screws up. You better triple check your return to make sure you're getting 60/40 on any gains. Good luck.
hes a CPA.... but he didnt know about the 60/40 rule neither... i had to tell him.... now im trying to find some kind of document that states you dont have to break down the trades for the YM
It amazes me, that someone calls themselves a CPA and may not even understand the taxation of sec. 1256 contracts. I hope you are not paying this Goof Ball! Better idea, get another accountant, or just file an extension.....pay some estimated tax.
he's a disgrace to call himself a cpa. since the beginning of time brokers have given jsut a profit and loss on 1256 for futures. i'd fire him immediately
Screw that guy! He should be looking through documentation on the correct way to report those trades. Attached is the federal form to request an extension (it's granted automatically). You'll have to check with you state as to how it handles extensions. And remember that it's only an extension to file, not to pay. To avoid penalties and interest you have to pay 90 percent of your tax liability by 17 April. If you haven't withheld at least that much make sure you send in a check with the extension request (estimate high to be safe). Worst case scenario is that this guy screws up your return and you file an amended return later once you've retained competent help (I believe you have three years to do so). But why pay more than you need to and give the gov't an interest-free loan? I would file the extension and then start calling around for a new CPA after 17 April. Regards,
A word to the wise: DO NOT, UNDER ANY CIRCUMSTANCES WHATSOEVER let anybody do your taxes unless you are fully capable of doing them yourself. Sooner or later you're gonna get screwed. All it takes is a willingness to read the IRS instruction publications. THey are convoluted, but it's nothing more than a sophisticated version of color by number. I can't tell you how many friend/asscocites let the CPA do it and lost hundreds of thousands of dollars. It's your money, are you concerned if something happens to it? If so, You MUST learn this so at least you can check your CPA's work of know if the CPA knows what they're doing.