USA Taxes - what form for index futures?

[TGregg]

What's the form that I use to report gains & losses from Futures (I'm guessing it's not Sched D). I'm not M2M or trader status or anything special, and only have about 6 futures trades from last year to report (along with a crap load of Q trades that imported nicely from MS Money ).

 

[ElectricSavant]

form 6781 section 1256

 

[TGregg]

Quote from ElectricSavant:

form 6781 section 1256

ZZZZZOOOM! Thank you for the very fast reply, Electric Savant.

 

[ElectricSavant]

line 11 on schedule D.... you will put the result from form 6781

Michael B.

 

[TGregg]

Quote from ElectricSavant:

line 11 on schedule D.... you will put the result from form 6781

Michael B.

TaxCut was kind enough to do that for me at least. Surprised to find out that you don't have to enter each and every trade, just the summary from the 1099-B. That's nice. 60/40 and summary entry - at least the government is making it easier for me to give them money.

 

[version77]

Quote from ElectricSavant:

line 11 on schedule D.... you will put the result from form 6781

Michael B.

Your short term gain/loss (40%) would end up on line 4 of your
Schedule D and your long term gain/loss (60%) would end up
on line 11 of your Schedule D.

 

[jaholmes]

Quote from ElectricSavant:

line 11 on schedule D.... you will put the result from form 6781

Michael B.

From the IB 1099 form where does the following go:
Line 4. commissions Paid on Futures.

Can this be expensed as an itemized deduction, or increase the loss.

Thanks,

Jim

 

[AAAintheBeltway]

Quote from jaholmes:



From the IB 1099 form where does the following go:
Line 4. commissions Paid on Futures.

Can this be expensed as an itemized deduction, or increase the loss.

Thanks,

Jim

Hope this isn't too late. For some reason IB reports this differently than all other FCM's, who net out the commish expense on the PNL. We had another thread discussing this subject under retail brokers and several of us contacted IB. The general consensus was that you should subtract the commish from nay profit or use it to increase any loss, ie. it is not included in the PNL figure they gave you. The IRS form anticipates that it will be included so you have to do it your self. Do not take it as an itemized deduction because then you will be subject to the 2% of AGI threshold.

As is customary, do not rely on this but consult your own professional tax advisor.

 

[ElectricSavant]

Interesting.......Interactive Brokers needs to follow the IRS reporting guidelines like all other FCM's.

I wonder what the reporting rules that the IRS publish say?

In this time computers cross reference what they report to what we report and kick out a quick-audit without humans ever touching the audit. Just look at Interest Income for an example of this.

So if IB breaks out this profit or loss by separating the commish and 100 % of all the other FCM's don't .......what number do you think the IRS will use to cross reference with?....see my point?

Sometimes it is just better to give the IRS a little extra, just to keep them off your back. I seem to get audited every year now....and I just send the check....

Michael B.