Futures Traders
Tax Help for Futures Traders (Section 1256)
Regulated futures and broad-based index options generally qualify as Section 1256 contracts, which follow their own reporting path on Form 6781 rather than Form 8949.
Start Basic IntakeHow it's generally taxed
60/40 treatment
Net gains are taxed 60% at long-term and 40% at short-term rates, regardless of how long you held the position.
Year-end mark-to-market
Open positions are treated as sold at fair value on the last business day of the year.
Loss carryback
Individuals may elect to carry net Section 1256 losses back three years against prior Section 1256 gains.
General information only. Treatment depends on your facts and agreements.
What we handle
- Form 6781 preparation from broker 1099-B totals
- Multi-broker reconciliation
- Section 1256 loss carryback election review
- Forex Section 988 vs. 1256 review
- Trader Tax Status review for expense deductions
- Quarterly estimated tax planning
Forms involved
- Form 1099-B (aggregate)
- Form 6781
- Schedule D
Common mistakes
- Entering futures on Form 8949 instead of Form 6781
- Treating futures as fully short-term
- Missing the carryback election when you have a loss year
Where most futures traders start
Many start with our Essential plan. We'll confirm the right fit after your intake.
Compare plansGuides for futures traders
Futures & Options
Section 1256 Contracts: The 60/40 Tax Treatment Explained
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Forex
Forex Trading Taxes: Currency Pairs, Brokers, and Reporting Requirements
Loss Strategy
Trading Losses and Net Operating Loss (NOL): Carryback and Carryforward Rules