Quick insight as to how taxes work with Futures?

Discussion in 'Taxes and Accounting' started by JMowery1987, Nov 20, 2005.

  1. I'm just in the search for a quick explination of how taxes work with Futures trading.

    I'm 18, about to turn 19, and never had to deal with taxes or anything of the sort, but I also don't want to get in trouble with the IRS either.

    If anyone has like an "overview" of what goes on with taxes, or if any of you trade futures and have information about how it works, I'd really appreciate it.

    Also any websites for direction on any more information about taxes.

    Again, I'd appreciate any help.

  2. google Section 1256 Contracts
  3. I was actually looking for explination as well, it's quite useless for me as I don't know what information to trust. I mean, I know I should be able to do taxes and stuff if I'm trading, but I really am clueless as to how it all works.

    So again, any information that is taken time to help, would be appreciated. If not, then don't worry about posting, I just needed some help, but hard to get help anymore on ET. But am almost out of options.

    I'm sure others could possibly benefit as well.
  4. look up section 1256 on the IRS website. At least then you'll know what the wrong information is :D

    Consider buying a book on taxation, read the reviews on amazon. I just read "A Tax Guide for Traders" by Robert Green and found it pretty good, but for more general tax issues. Or contact a good CPA....you may pay $500 but if you make $50000 in futures it'll be worth it in taxes saved.

  5. Good information, thanks.

    Any more is welcomed
  6. Truff