Trading ETF's & 60/40 Rule

[EdgeHunter]

If you change to a professional trader status, but are not in a prop firm, is there ANYWAY to qualify for the 60/40 tax rule on trading profits when you only trade ETF's....

i understand that emini futures have that 60/40 tax benefit but i prefer the tighter spread of the ETF's... etc...

cj...

 

[Surdo]

No, ETF's are always treated stocks, regardless of your filing status.

 

[EdgeHunter]

Quote from Surdo:

No, ETF's are always treated stocks, regardless of your filing status.

thanks Surdo...

Dang...

cj...

 

[Bitstream]

u guys pay 40% taxes over there?

sheesh...if so that's outright theft.

 

[Surdo]

The 60/40 he was referring to is 60% LONG term vs 40% SHORT term, NOT the rate but the tax treatment.

Futures are IRC 1256 contracts and get "60/40" treatment, a hybrid of Long and Short term Cap. gains.