Under MTM, is income taxed at a lower rate than capital gains?

Discussion in 'Taxes and Accounting' started by kcgoogler, Jan 3, 2012.

  1. I was reading an article and came across this statement; not sure if it was an error or what.

    "Under MTM, income is taxed at a lower rate than capital gains."


    Really i did not know if you select MTM, your income is taxed at lower than capital gains? really? any body knows if it makes any sense?

  2. Grinder


    That link is pure spam!! You open it and your PC is at risk which is blantantly obvious.

    Now either you know this which is why you posted it or you were unaware which is a real worry.
  3. Really? what makes you think so. Just to clear one thing off; i am not advertising for whoever wrote that article or anything. i am an individual trader just trying to make sense of all the rules and stuff and trying to see how to optimize my resource allocations.

    And attached is WOT ranking for the page; nothing seems unsafe about it; so save your worry.

    Now if anybody has anything useful to say about the content, i would appreciate.

  4. Grinder


    If it's a site purely for educational purposes than my apologies, it's just that as soon as I hit the link about half a dozen pops ups hit my screen and I found it very difficult to leave the page.

    BTW I don't have any insight as to the article as I think it's US based which isn't relevant to me.
  5. Oh is it. pop'ups are a thing of the past.

    Pretty much every browser now has a plugin or an inbuilt way of blocking popups. Look into it. I've not had to kill a popup in gosh.. maybe 4 or 5 years now.

    If you havent heard about them in the past, google for "popup blockers for my browser ". You will love it.

  6. Grinder


    Ok then.

    BTW. For anything tax related visit the appropriate government related sites, easier than sifting through what is most probably rubbish on the net.

  7. That is pure nonsense.

    MTM makes your trading income ordinary income which has the highest tax rate. MTM also makes you lose 60/40 treatment for section 1256 contracts.

    Read actual informed information at:


  8. Yep. Thats what i suspected.

    I suppose the main advantage really is not having to do wash sales and the ability to write off more losses than the std 3000$ i will otherwise be able to take.