Trading ETF's & 60/40 Rule

Discussion in 'ETFs' started by EdgeHunter, Sep 9, 2006.

  1. If you change to a professional trader status, but are not in a prop firm, is there ANYWAY to qualify for the 60/40 tax rule on trading profits when you only trade ETF's....

    i understand that emini futures have that 60/40 tax benefit but i prefer the tighter spread of the ETF's... etc...

    cj...
     
  2. Surdo

    Surdo

    No, ETF's are always treated stocks, regardless of your filing status.
     
  3. thanks Surdo...

    Dang... :(

    cj...
     
  4. u guys pay 40% taxes over there?

    sheesh...if so that's outright theft.
     
  5. Surdo

    Surdo

    The 60/40 he was referring to is 60% LONG term vs 40% SHORT term, NOT the rate but the tax treatment.

    Futures are IRC 1256 contracts and get "60/40" treatment, a hybrid of Long and Short term Cap. gains.