IB Tax Forms: IRC Section 1256 vs 1099-B

Discussion in 'Retail Brokers' started by DisciplinedHedg, Feb 17, 2008.

  1. Hoping someone can shed some light on the 2 tax forms for futures traders.

    IB does a good job with IRC Section 1256 summarizing all futures transactions.

    But I'm not clear on how they get the amounts for box 8 and 11 on Form 1099-B or why a 1099-B is even needed for futures traders. It doesn't correlate with any amount I can find, or maybe it's just late and I should go to sleep.

    Anyone know?
  2. Well, it must be late at night as I just found the answer to my question.

    The IRC Section 1256 includes futures and futures options. But the 1099-B only includes futures.

    Still a little confusing to me. Anyone know why IRC Section 1256 and 1099-B are reported differently?