UVXY

[dcwriter2]

Am I right in hearing that UVXY (and I presume VXX) get K1 treatment at Interactive Brokers and Sec. 1256 treatment at TD Ameritrade?

 

[Robert Morse]

You should check with your tax specialist, but it is my expectation:

No ETN or ETF gets 1256 treatment-the options..maybe.
https://greentradertax.com/trader-tax-center/tax-treatment/section-1256-contracts/

I'm not sure what you do with the K1-https://www.proshares.com/k-1_tax_information/

 

[TommyR]

You should check with your tax specialist, but it is my expectation:

No ETN or ETF gets 1256 treatment-the options..maybe.
https://greentradertax.com/trader-tax-center/tax-treatment/section-1256-contracts/

I'm not sure what you do with the K1-https://www.proshares.com/k-1_tax_information/[/U

You should check with your tax specialist, but it is my expectation:

No ETN or ETF gets 1256 treatment-the options..maybe.
[URL]https://greentradertax.com/trader-tax-center/tax-treatment/section-1256-contracts/

I'm not sure what you do with the K1-https://www.proshares.com/k-1_tax_information/

mate you can not afford to advise people to buy itm calls to hedge a long stock position surely?[/URL]

 

[dcwriter2]

Actually, I meant options on UVXY and VXX ...

 

[Derper500]

From what I determine, UVXY options are considered section 1256 contracts.

They are based on a direct holding of a regulated futures contract and regulated futures contracts and non-equity options get 1256 treatment.

I'm going to think buying and selling UVXY also gets 1256 treatment, not just the options.