Do options on UVXY and TLT get Sec. 1256 treatment?
- Thread starter dcwriter2
- Start date
I am sure this same question was answered earlier.
You can use what is known as 'substantial authority stand' and file as 1256 taking a departure from broker in the event he did 1099 b on these.
Document in 8725 as a note.
A cpa should be that substantial authority and not you as an individual. In the event you get audited he undertakes the responsibility.
If filing on your own wait for brokers decision and you are out of luck without a cpa (assuming audit).
Whether the cpa will agree to do this or not is the next issue. Some will agree and some will disagree.
Next year trade these in a tax deferred account. Avoid headaches.
You can use what is known as 'substantial authority stand' and file as 1256 taking a departure from broker in the event he did 1099 b on these.
Document in 8725 as a note.
A cpa should be that substantial authority and not you as an individual. In the event you get audited he undertakes the responsibility.
If filing on your own wait for brokers decision and you are out of luck without a cpa (assuming audit).
Whether the cpa will agree to do this or not is the next issue. Some will agree and some will disagree.
Next year trade these in a tax deferred account. Avoid headaches.
Thanks. What a pain. I'll have to spread rather short naked, I guess.
https://greentradertax.com/trader-tax-center/tax-treatment/section-1256-contracts/
So, as long as UVXY and TLT are not considered equities, options on them would be considered Section 1256 contracts.
So, as long as UVXY and TLT are not considered equities, options on them would be considered Section 1256 contracts.
K1 is for the underlying from proshares. Proshares doesn't care about options on the underlying.