Dumb question: I rencently moved to trading futures and can't figure what the correct (acceptable to IRS) procedure is to fill in for each trade on schedule D for the cost and sale amounts. Do you use the whole value of the contract, the credit/debit amounts shown on the Gain/Loss column of the daily statements from IB, or something else? Also, what is the "Set Price" and how does IB determine it and use it. Thanks for answers.
I don't think futures should be in sch D. they are regulater futures contracts and as such should be in form 6781. Read up IRs purblications about section 1256 contracts to educate yourself better. good luck.
Wow, this is humbling. I thought I knew something about the tax code. Thx for this info. btw- are SSF's treated as section 1256 contracts?
I read in a thead somewhere that they are special for they might have joint sec/cftc juristiction which really gums up the tax code black/white area. Best to consult with acct. FAMILIAR with them.
yes, futures are 1256 contracts. Take a look at 6781, that should answer your question. The info from 6781 then goes on sched D. (you do not need to list every trade)
How come we don't need to list every trade if it tells us to? Look on Schedule D and it has a bunch of spaces for trades. In the past I always listed every individual trade (what a pain in the ass). Are you saying I don't need to do this??? F. PeBBLe