Your expertise is well respected, but I feel a comparison of banc de binary and Nadex may not be apples to apples, and I would let Nadex fight that battle for me. thanks.
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NADEX
- Thread starter Satan's Helper
- Start date
Your expertise is well respected, but I feel a comparison of banc de binary and Nadex may not be apples to apples, and I would let Nadex fight that battle for me. thanks.
Thanks. We are not comparing trading binary options on the Nadex exchange with trading binary options off-exchange which the CFTC argues is illegal in the case of Banc de Binary. We only bring up that CFTC lawsuit in discussion of whether or not binary options are treated as options in the tax code. We don't think they are and that's key to saying they aren't nonequity options in Section 1256.
Thanks. We are not comparing trading binary options on the Nadex exchange with trading binary options off-exchange which the CFTC argues is illegal in the case of Banc de Binary. We only bring up that CFTC lawsuit in discussion of whether or not binary options are treated as options in the tax code. We don't think they are and that's key to saying they aren't nonequity options in Section 1256.
Thanks for the clarification. In fact, I was driving this morning thinking of calling your firm for myself and my clients before seeing this post. I would think, however, Nadex has cleared the 1256 status with regulators. But besides that, I'm not sure why you would want to make a case for traders to have to pay more taxes, especially when, from a precedent stand point, there has not been many rulings on the matter. At least that is my understanding, but I'm a trader, not a tax specialist.
Thanks, we look forward to working with you and your clients.
Nadex does not have a private letter ruling for 1256 treatment.
We have some clients with losses on Nadex binary options based on currency. They prefer using the correct Section 988 ordinary loss treatment without a capital loss limitation.
We were hoping Nadex could be Section 1256 but we couldn't justify that after doing extensive work on it.
Nadex does not have a private letter ruling for 1256 treatment.
We have some clients with losses on Nadex binary options based on currency. They prefer using the correct Section 988 ordinary loss treatment without a capital loss limitation.
We were hoping Nadex could be Section 1256 but we couldn't justify that after doing extensive work on it.