1256 contract traders, a tax question.

Overnight

Overnight

For those experienced with the 1256, have you found any extra tax liability by holding a 1256 through the close of the calendar year? I have been flat the past two years, but am thinking of holding current position through New Year's.

Does anyone have direct experience with how that might affect the current year's federal return, and the one following that? I will of course refer to the accountant next year, but I be looking for some experiences as ammo to go into the new tax year better armed and to know what questions to ask if needed.

Thanks!
 
It won't matter if you close or have it open, 1256 positions are marked to market so the profit or loss of open positions at end of year will be counted as if closed on that day for tax purposes.
 
algofy said:
It won't matter if you close or have it open, 1256 positions are marked to market so the profit or loss of open positions at end of year will be counted as if closed on that day for tax purposes.
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Thanks algo. So a pissant like me with a couple of lots open on Dec 31 is not going to affect me in any major way.
 
algofy said:
Gonna go balls deep the new BTC futs?
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You know my journal, yes? You like it. You see how I am very conservative currently...So to answer you, I have this answer for you...


Not even enough time to see the rabbit in it's full blood-thirsty habit of decapitating unsuspecting traders.

Hell no, I will take a wait-and-see approach on that one. Give it a couple of quarters to understand the volatility.
 
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