What are the taxes for roll-over of the Futs contracts for ES

[traderwald]

Hi guys,

Do we need to consider the profits made at the point of roll-over (which are immediately put to the next contract) when calculating tax to be done ?

Thank you

 

[xandman]

If the futures contracts are owned thru a taxable account, Yes.

Rollovers in futures are just simultaneous trades in your account. So, you have a gain or loss in the closing of the old contract.

 

[Overnight]

Hi guys,

Do we need to consider the profits made at the point of roll-over (which are immediately put to the next contract) when calculating tax to be done ?

Thank you

MTM at end of year is what counts. You make 1 million in 1st half of year, you pay estimated tax on that 1 million in profit.

You lose 1 million in 2nd half of year, you have MTM at end of year for 0. So you will get back all the taxes you have paid on that 1 million you THOUGHT you'd have at the EOY.