Quote from Corso482: . . .none have really explained why keeping 60/40 tax treatment will be advantageous to the economy or the country. -------------------------------------------------------------------------------- Corso, The commodities markets are involved in the world's largest business. All futures contracts, foreign currency contracts, options on stock exchanges, and broad-based stock indexes are known as 1256 contracts. If i have more of that profit to spend or can save from carrying forward or carrying back my losses then that will have an economic impact. Bruce
guys, the 60/40 thing is a scam and you all know it. Your best shot is to pray this will go away quietly, otherwise you've got no case. PS. The tax code is also a scam, but thats not going anywhere, anytime soon.
It's their own damn fault! They had the SEC do the 25k daytrading rule which drove everyone over to the futs mkt. 25k rule never made sense from day one.
Yes, it does not hurt to send letters/emails to your congress rep just so they know how we feel. However, we do not matter one lttle bit to them. Recall how easily the PDT rule was passed despite strong opposition from small day traders. The point is, we may be growing in numbers, but we still hold little to no clout. If we are to defeat this repeal it is nessary for the heavy hitters to step to the plate and lobby against it, namely the CME and the CBOT. It is in their interest to stop this repeal, as they have long used the 60/40 tax split as a selling point for their products vs. stocks. We should all appeal not only to our congress reps and senators, but also to the exchanges. Tell them you will stop trading futures and go back to trading stocks (lie if you have to) if they do nothing to try to block this repeal. A strong anti-repeal lobby from Chicago might be able to stop this...we as individual futures traders cannot stop it alone. The fact that the CME is now a publicly traded corporation is an advantage to us and our appeals. The CME has not only lost business to be concerned with but also a potentially declining stock price and pissed off shareholders to contend with.
777, This isn't a lawsuit we're talking about here, this is politics! You'd better believe we will not go quietly into that good night. Bruce
The farmer uses the futures markets to lock in a profit or hedge the value of his or her unharvested crops out in the field, so as to protect against future events raising or lowering the future value of the crops. When the farmer sells the actual crops, those sales are capital gains, often long-term capital gains. Roughly about 60%/40% long-term, apparently. And when the crops are sold, presumably the futures position is also liquidated. Since the crops are given roughly 60%/40% treatment, it makes sense to give the same treatment to the farmer's futures position. Otherwise, the farmer would not be given the same tax treatment for his futures hedge. At least that was the rationale provided to me when I was in law school. Silver
I could not find the specific wording of ammendment 680 to Senate Bill on the thomas.local.gov site. Can someone post that? The prior link doesn't seem to work for me. Thanks, MYD
Amendments Adopted Amendment (S.A. 680) by Sen. Charles E. Grassley (R-Iowa) to Jobs and Growth Tax Relief Reconciliation Act of 2003 (S. 1054) to Alter Exemptions SEC.____. REPEAL OF CAPITAL GAINS TREATMENT FOR CERTAIN TRANSACTIONS INVOLVING OPTIONS AND COMMODITIES DEALERS. (a) IN GENERAL. Subsection (a) of section 1256 (relating to section 1256 contracts marked to market) is amended (1)by striking paragraph (3), (2) by redesignating paragraph (4) as paragraph (3), and (3) by inserting âandâ at the end of paragraph (2). (b) CONFORMING AMENDMENTS.- (1) Section 988(c)(1)(E)(iv) is amended to read as follows: â(iv) TREATMENT OF CERTAIN CURRENCY CONTRACTS.-Except as provided in regulations, in the case of a qualified fund, any bank forward contract, any foreign currency futures contract traded on a foreign exchange, or to the extent provided in regulations any similar instrument, which is not otherwise a section 1256 contract shall be treated as a section 1256 contract for purposes of section 1256â (2) Section 1092(b)(2)(A)(ii) is amended by striking âand section 1256(a)(3) will only apply to net gain or net loss attributable to section 1256 con-tractsâ. (3) Section 1092(d)(5)(B) is amended by striking â1256(a)(4)â and inserting â1256(a)(3)â. (4) Section 1256(c)(1) is amended by striking âparagraphs (1), (2), and (3)â and inserting âpara-graphs (1) and (2)â. (c). EFFECTIVE DATE.-The amendments made by this section shall apply to taxable years beginning after December 31, 2003 Bruce
Why are you so surprised haha ! You should prepare yourself instead as I told you: just my 2 cents experience from french futures market : "02-22-03 10:30 PM Higher fees, higher account, higher margin call, higher speed, higher taxes : prepare for that or you will be washed out like some french floor traders who didn't expect it. If you are swinger you won't feel too much affected but if you are scalper the difference can be huge." http://www.elitetrader.com/vb/showthread.php?s=&postid=208149#post208149 As for repealing the tax really you are dreaming, you are incapable of doing anything for even more important thing like your Constitution deviation and you expect to be able to do something in this domain ? Funny really. P.S.: you should even consider yourself as unofficial tax collectors either by real tax either by washing you out in a few months/years. Don't whine that's the game of speculation since economically and globally speculators must be the losers by assuming the risk. Of course there are unfair speculation from the big ones but fairness has never been the goal of this game. If it was speculation wouldn't exist it cannot be easy for the majority. At least in this game even idiots can succeed if he is disciplined enough and have a good method. Much less difficult than to become doctor or engineer. In fact doctor or engineer rarely succeed in speculation they are too much prisoner of their education to learn again. P.S.2: I bet that one day you will also be required 50000$ to open a future account. That used to be the normal level of account in France.