Taxes: Where is Options on Futures P/L on IB 1099?

[Kensho]

On my 1099 from IB:

Box 9: Profit or (loss) realized in 2013 on closed contracts
Box 12: Aggregate profit or (loss) on contracts

Both boxes show my futures P/L.
The figures don't include my options on futures P/L. Is this a mistake? Or am I supposed to self report options on futures P/L?

 

[Kensho]

80 views and no reply? No one trades options on futures? 2013 was my first year trading options on futures so I haven't dealt with this before.

The way I am dealing with it is I am entering the P/L on options on futures the same way I enter the P/L on futures. Is this correct? But since the figure doesn't match what is on the 1099 I hope I don't get audited. A reply prior to April 15th would be appreciated

 

[Kensho]

Okay I think I found the answer from the turbotax website. Here is the answer to my same question posted by a turbotax employee:

To enter this go to

Federal Taxes, Wages and Income
Scroll down to the investment income section
Go to Contracts and Straddles.
Next, if your like most, you'll make no elections.
On the following page select the mark to market option.
The following page will ask you for your broker name, account description, and your aggregate profit or loss.
Fill in the info and your done.

 

[1245]

On my 1099 from IB:

Box 9: Profit or (loss) realized in 2013 on closed contracts
Box 12: Aggregate profit or (loss) on contracts

Both boxes show my futures P/L.
The figures don't include my options on futures P/L. Is this a mistake? Or am I supposed to self report options on futures P/L?

Did you call IB and ask?

 

[rwk]

On my 1099 from IB:

Box 9: Profit or (loss) realized in 2013 on closed contracts
Box 12: Aggregate profit or (loss) on contracts

Both boxes show my futures P/L.
The figures don't include my options on futures P/L. Is this a mistake? Or am I supposed to self report options on futures P/L?

Brokers are not required to report options on futures on the Form 1099, and therefore IB doesn't report it. But your gain or loss still must be reported the the IRS on Form 6781 and Schedule D. You will have to calculate the numbers using your annual statement.

 

[Trader13]

The IRS is requiring brokers to report options trades beginning in 2014. So tax reporting for options should be easier when you prepare your return next year.

 

[moonmist]

80 views and no reply? No one trades options on futures? 2013 was my first year trading options on futures so I haven't dealt with this before.

The way I am dealing with it is I am entering the P/L on options on futures the same way I enter the P/L on futures. Is this correct? But since the figure doesn't match what is on the 1099 I hope I don't get audited. A reply prior to April 15th would be appreciated

Futures, options on futures, broad-based index options, etc., are 1256 contracts. You just need to report the net gain/loss on Form 6781. It is not necessary to list individual trades. Any net gain/loss from 1256 Contracts is treated as 40% short-term gain/loss and 60% long-term gain/loss, regardless of the holding period. After you have done the calculations, enter the long-term and short-term gain on Schedule D, respectively.


http://en.wikipedia.org/wiki/1256_Contract

All open positions of 1256 Contracts will need to mark to market at year end, meaning that any contract held at the end of the tax year is assumed to have been sold/bought for its current fair market value as of that date, and the resulting unrealized gain or loss is recognized.

Most tax software, eg. TurboTax, can handle these transactions. Just need to follow the instructions step by step.