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PureBytes Links
Trading Reference Links
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If you need an extention, use form 4868 from www.irs.gov .... other forms
are available there in PDF format.
>From MIF:
For commodity futures trading gains and losses, fill out a Form
6781. On this form 60% of your gains/losses will be treated as long
term, 40% as short term. You then roll these numbers over to a
regular Schedule D - Capital Gains and Losses form and combine with
other capital gain/losses that you have. Then you can subtract any
losses up to $3000 from your salary on Form 1040, and roll the
remainder forward for future tax years.
It's not a well known fact, but gains and losses from trading
foreign currencies on the Forex are taxed as ordinary income on Line
21 of Form 1040. The category is called "Other income -- gains/losses
from unregulated foreign exchange trading." In this case you could
directly subtract losses from your ordinary income. Not for trading
futures contracts, however.
More from MIF:
If you trade on a regular basis you can deduct most of your
trading support expense using Sch C and treat this activity as
a business not just an investment activity.
Your business type is Commodity Trader. Don't know have it in front of me
but there is a Business Code for this type of activity.
You only use Sch C to document business operation expenses and Home office
depriciation. Form 6781 and Sch D are still used to do the profit/Loss
accounting.
The thing I like was that seminars, software, books, mags, ... all can be
documented on Sch C page 2 "Other expenses.."
----- Original Message -----
From: "sptrader" <sptrader@xxxxxxxxxxxxx>
To: "Omega List" <omega-list@xxxxxxxxxx>
Sent: Saturday, April 15, 2000 2:24 PM
Subject: Tax form for futures
: Could someone tell me the tax form number for futures trades ? - I just
: moved and can't find my old ones.
: Thanks in advance-
: Steve
:
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