What are the taxes for roll-over of the Futs contracts for ES

Discussion in 'Index Futures' started by etrades, Aug 2, 2020 at 1:24 AM.

  1. etrades

    etrades

    Hi guys,

    Do we need to consider the profits made at the point of roll-over (which are immediately put to the next contract) when calculating tax to be done ?

    Thank you
     
  2. xandman

    xandman

    If the futures contracts are owned thru a taxable account, Yes.

    Rollovers in futures are just simultaneous trades in your account. So, you have a gain or loss in the closing of the old contract.
     
    etrades likes this.
  3. Overnight

    Overnight

    MTM at end of year is what counts. You make 1 million in 1st half of year, you pay estimated tax on that 1 million in profit.

    You lose 1 million in 2nd half of year, you have MTM at end of year for 0. So you will get back all the taxes you have paid on that 1 million you THOUGHT you'd have at the EOY.
     
    Cannon_Trading likes this.