futures trading tax question

[vrodtrader]

Hi,

I read somewhere that 60% of the gains from futures trading are taxed as long term capital gains. Is that correct?

Vrodtrader

 

[Quah]

Yes.

 

[phoenix_rising]

Another question... Do futures gains/losses offset equities gains/losses? Or can you only match futures with futures and equities with equities?

 

[pspr]

Yes to the first question.

No to the second.

Quote from phoenix_rising:

Another question... Do futures gains/losses offset equities gains/losses? Or can you only match futures with futures and equities with equities?

 

[phoenix_rising]

Thanks...

 

[vrodtrader]

Alright... say if someone makes 100K profit in futures trading at 30% tax rate which is 30K and 60% of 30K is spread over the number of years and 40% of 30K is due immediately. Is that correct?

Vrodstud

 

[EMini-Player]

I don't think it's spread over a number of years; instead you just pay the long-term capital gains tax rate, which I believe is around 15% or so.

So, $100K profit. $60K would be taxed at 15%; and $40K would be taxed at 30% or whatever your income bracket is.

-Fast