Tax question

Discussion in 'Index Futures' started by nursebee, Feb 8, 2011.

  1. nursebee

    nursebee

    This summer I had two futures trading accounts, nearly blew them out, closed them out.

    Now I am filling out tax paperwork from my accountant and have kept poor records but have the 1099s. Does the IRS need a record of each trade (the way my acct has me do stocks and options) or do the 1099s suffice?

    I hope for an easy answer... but expect the opposite.
     
  2. Big AAPL

    Big AAPL

    No. Net gain or loss on 1099 is all you need for Futs.
     
  3. the1

    the1

    No. Your accountant only needs your P/L for each account, which goes on Form 6781. Your P/L gets reported as one lump sum, not a trade by trade report like the equity side. I've had Schedule D-1's that were as thick as a book back in the old days. Since switching to futures and taking a long term perspective on equities my reporting has become <b>incredibly</b> simpler!

    Form 6781 flows to Schedule D, which, in turn, flows to the 1040. It's a thing of beauty.
     
  4. nursebee

    nursebee

    Thank you everyone!