Questions tagged [section-1256]

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How to report 1256 future contracts gains/losses?

I am a student in the US on F1 visa. I have been involved in trading future contracts and cannot find correct way of reporting the gains/losses from doing so. I received 1099 B with a section 1256 ...
1 vote
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Tax treatment of underlying asset in 1256 options contract if exercised

I've talked to a tax professional but got a very uncertain answer and can't find any examples online, only examples are of the option expiring worthless rather than in the money. Example: 1 Bitcoin ...
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1 vote
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Form 6781 and position close date when becoming different state resident?

It seems that Form 6781 Part 1 does not allow to specify position close date. This is where I believe, for example, VIX option trades should go. And it seems that TurboTax in case tax filer moved ...
5 votes
2 answers
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Are options on popular ETF considered section 1256 contracts?

I want to learn about 1256 contracts and am wondering if options on common ETFs (like QQQ, SPY, DIA) (not futures) are considered section 1256, because these ETF tracks broad market but does not ...
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2 votes
1 answer
178 views

Is there a deadline to respond to an IRS request for additional documentation?

When I sent in my 2014 tax return late last year, I also sent in an amendment to my 2013 tax return due to a Section 1256 contract loss carryback (I had Section 1256 gains in 2013 and losses in 2014). ...
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21 votes
1 answer
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What tax law loophole is Buffett referring to?

In a recent op-ed, Warren Buffett made a claim about investment managers: Others own stock index futures for 10 minutes and have 60 percent of their gain taxed at 15 percent, as if they’d been long-...
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