Last night we did a webinar with Robert Green, the leading authority on trading tax.
In this webinar Robert talked about "Tax Benefits From Trading Futures & Other Section 1256 Contracts:"
- Section 1256 includes many instruments:
Not just futures contracts, but also non-equity options including options on indexes, options on futures, most ETF options, broad-based indexes, many foreign futures and electing forex traders in forwards and sometimes spot.
- Lower tax rates apply to Section 1256 contracts:
Section 1256 contracts have lower "60/40 tax rates." This can be up to 12% less than ordinary tax rates on short-term capital gains. That's up to a third off!
- Loss carryback election:
At tax-filing time, all taxpayers may elect to carryback Section 1256 losses three tax years against Section 1256 gains. With mark-to-market accounting included in Section 1256, onerous wash sale rules don't apply. And that saves traders added tax costs and headaches.
- Easier accounting and tax reporting:
Securities traders are facing a nightmare at tax time dealing with the IRS's new cost-basis reporting rules being phased in starting in 2011 and ending in 2014. But accounting is simple for Section 1256 contract traders.
- Tax benefits for investors versus business traders:
Although, Section 1256 tax advantages are not predicated on having trader tax status (business treatment), active traders can unlock additional tax breaks if they qualify for trader tax status.
Click the video below to watch the recording of this trading tax webinar.
(It might take a few seconds for the video to load)
For more information on trading tax,
please visit Robert's website www.greencompany.com.