tax for futures traders

Discussion in 'Taxes and Accounting' started by nyc_guy, Feb 27, 2012.

  1. nyc_guy

    nyc_guy

    Can someone answer a simple question for me. If i just open a futures account and only trade futures using my own money, what is the tax that will be applied to my gains per year? Does that 60/40 rule apply and would most of it be considered long term cap gains?
     
  2. nkhoi

    nkhoi Moderator

    yes even if you hold futures for a nano second
     
  3. emg

    emg


    if u are a career trader, u should have your own cpa. talk to your cpa. otherwise, call any tax consultants. A wiseman/woman will ask Certified Tax Preparer/CPA for any tax questions. A loser will ask non Certified Tax Preparer?CPA for any tax questions.
     
  4. nyc_guy

    nyc_guy

    why do i need a cpa? assuming i just trade futures and have no other sourceof income, wouldn't filing taxes be pretty straightforward?

    It's just a schedule c no?
     
  5. emg

    emg


    your question should be, is there any good cpa/tax consultant in new york city?





    P.S


    CPA/Certified Tax Consultants are familiar with the TAX LAW
     
  6. 1) Go to greentradertax.com and tradersaccounting for trading-related tax matters merely as a "starting point". :)
    2) Go to a trading-knowledgable CPA for additional info, not just any generic CPA. :cool:
     
  7. nkhoi

    nkhoi Moderator

    you need form 6781, just use taxcut deluxe, you file 1 line and it will take care of the rest.
     
  8. The vast majority of accountants, including CPAs, know very little about taxes for traders. If your taxes are simple and straightforward then you can do them yourself, but you have to do the research which is rather time consuming. If you trade enough, as in the IRS can’t deny you are clearly an active trader, and have no other sources of income then you can have your futures trading gains go on form 6781 and transferred to Schedule D, and you can take deductions for your expenses on schedule C if you are not trading through an entity. Those expenses especially the home office deductions can be tricky, and some traders simply don’t have enough expenses to bother, it depends on your particular situation. If you trade and lose money or have carry over loses then what you will be able to deduct that year will change, and again depends on your situation.
     
  9. Yeah, try these first because most other tax accountants will most likely make mistakes or cost you money (more than you should) if you don't use someone that's specialized or has experience with doing taxes for independent traders.

    Heck, even calling your government so called "tax help line" will cause more harm than good for independent traders...I speak from experience about a few issues 5 years ago that resulted in an audit :mad:
     
  10. emg

    emg

    #10     Feb 27, 2012