Repeal Of 60/40 Tax Treatment!!!
- Thread starter nqtrader
- Start date
Would this be possible in a scenario where one frequently makes substantial gains and gives just about all of it back? In this case, trading a large enough number of contracts that even though it's a small # of pts per contract, it still comes out to a decent annual profit?
Say, make 20 pts a day per contract, and give back 18 points a day?
I could imagine the 60/40 rule possibly having major effect in this scenario (but I'm very new at this, so this is only a guess)
Say, make 20 pts a day per contract, and give back 18 points a day?
I could imagine the 60/40 rule possibly having major effect in this scenario (but I'm very new at this, so this is only a guess)
No, it is very simple. The 60/40 rule only applies to an annual profit. Do away with the 60-40 tax treatment and the tax liability will increase only on the traders earning an annual profit. Traders incurring an annual net loss are not adversely affected by the possible tax change. They have other problems...
Agree. It's quite a surprise. I e-mailed the Editors of Futures magazine. They might have to adjust production schedules a little if they weren't already in the know on this and were caught unawares. Still, I've got confidence in the abilities of industry spokespeople to state the case for traders, they are the amplification of our voices.
Bruce
While some of you have eloquently expressed your outrage at the proposed changes, none have really explained why keeping 60/40 tax treatment will be adventageous to the economy or the country. Simply writing your representative to say you're mad won't work, especially since futures traders are so few.
No, I don't, but how else are you going to appeal to them? Their own self-interest doesn't matter because futures traders are too few to affect them. Whoever or whatever prompted them to change the law is more influential than a few hundred letters from a bunch of distraught day traders.