Supposed I have two accounts, each with, say, $25K, and one is a margin taxable account and the other is an IRA (with permission to trade futures). I hold Long ES in the taxable account and short NQ in the IRA. Let's say I lose $10K in the taxable account and make 10K in the IRA. (Roughly on each account, to make things simple, and let's assume a rough correlation.) I can't see a wash sale issue here, so I get the loss deducted, up to $3,000, right? No issues with the gain in the IRA, obviously. So, effectively, I have moved, roughly, $10,000 from a taxable account into an IRA, right? And I get a $3K deduction and $7K in deductions rolled over, right? This is kosher?
I easily could be wrong but I believe that I would lose the cap loss deduction in the taxable account if I was trading ES in both accounts (in this example). But who knows? Maybe the MTM rules say that doesn't apply and since so few people trade futures in an IRA, no one thinks about tax arbitrage.
How do you know that you won't lose $10K in the IRA and make $10K in the taxable account? Better yet, why don't you just make $10K in each account? ES/YM make a better pair than ES/NQ. I just try to make money in all my accounts.
Well, I could buy a call on that short NQ to hedge the risk of losing in the IRA and gaining in the taxable account. Thanks for the better correlation tip with YM. Why not earn money in both? Why not have all the money in a tax-deferred account (and a tax deduction to boot). Then start trading.