You have won the contest for the wackiest question ever at ET. You either traded Section 1256 contracts or you didn't. Only Section 1256 contracts qualify for 60/40 tax treatment. If you did trade Section 1256 contracts you must report them on Form 6781. Maybe you should just hire a CPA to do your taxes.
Glad you all so far are enjoying this thread.. I have hired a cpa and they didn't mention about 60/40.. Thanks for caring, but I know this isn't the last place to go for tax advice. I'm not sure why people would .. But I'm sure there are people who know their stuff here from doing it yr after yr and it would be a simple question to them .. All my future contract's gains got taxed 27% for federal and 3% for the state not just a portion..
How were your futures trades reported? If they were not reported on Form 6781 then your tax return is wrong, wrong, wrong. Section 1256 is Federal tax code only. I don't know of any states that give special tax treatment for Federal Section 1256 contracts.
I see that they put my futures trading on a schedule d under short -term capital gains and losses.. The only other form I see is form 6251 not a 6781? Should it of been on a 6781? Therefore, would the gains be 60% taxed at long term and 40% taxed as short term? If this is done incorrectly, maybe I can have them file for an extension..
1) Use a CPA who truly knows trading, not a "traditional" accountant. :eek: 2) You may be able to get some info/advice from greentradertax.com and tradersaccounting.com before Friday.
This isn't rocket science. Section 1256 contracts are reported on Form 6781 and lines 8 and 9 of Form 6781 are reported on Schedule D. Anything else is flat out wrong. Just look at Form 6781 and read the instructions. http://www.irs.gov/pub/irs-pdf/f6781.pdf A 1 page form and not even 3 pages of instructions. Must be too simple for a CPA to figure out.