As U.S.-based futures traders already know, U.S.-regulated futures are considered "IRC 1256" contracts and are given more favorable 60/40 tax treatment. I was wondering if this same tax break is allowed for U.S. traders who trade foreign futures contracts. So what is "foreign" from the perspective of the U.S.? Is it a contract on a foreign market, or a contract on a foreign exchange, or a contract on a foreign exchange that has a presence in the US? For the benefit of anyone else who wondered about this during tax season, I found a recent article (link below) which answers the question of which exchanges are qualified for 1256 status and indicates, for example, that futures contracts on Eurex and LIFFE are allowed 1256 status by the IRS. http://www.ey.com/GL/en/Services/Ta...Section-1256-qualified-board-or-exchange-list