On my 1099 from IB: Box 9: Profit or (loss) realized in 2013 on closed contracts Box 12: Aggregate profit or (loss) on contracts Both boxes show my futures P/L. The figures don't include my options on futures P/L. Is this a mistake? Or am I supposed to self report options on futures P/L?
80 views and no reply? No one trades options on futures? 2013 was my first year trading options on futures so I haven't dealt with this before. The way I am dealing with it is I am entering the P/L on options on futures the same way I enter the P/L on futures. Is this correct? But since the figure doesn't match what is on the 1099 I hope I don't get audited. A reply prior to April 15th would be appreciated
Okay I think I found the answer from the turbotax website. Here is the answer to my same question posted by a turbotax employee:
Brokers are not required to report options on futures on the Form 1099, and therefore IB doesn't report it. But your gain or loss still must be reported the the IRS on Form 6781 and Schedule D. You will have to calculate the numbers using your annual statement.
The IRS is requiring brokers to report options trades beginning in 2014. So tax reporting for options should be easier when you prepare your return next year.
Futures, options on futures, broad-based index options, etc., are 1256 contracts. You just need to report the net gain/loss on Form 6781. It is not necessary to list individual trades. Any net gain/loss from 1256 Contracts is treated as 40% short-term gain/loss and 60% long-term gain/loss, regardless of the holding period. After you have done the calculations, enter the long-term and short-term gain on Schedule D, respectively. http://en.wikipedia.org/wiki/1256_Contract All open positions of 1256 Contracts will need to mark to market at year end, meaning that any contract held at the end of the tax year is assumed to have been sold/bought for its current fair market value as of that date, and the resulting unrealized gain or loss is recognized. Most tax software, eg. TurboTax, can handle these transactions. Just need to follow the instructions step by step.