Questions tagged [section-1256]
6 questions
21
votes
1 answer
What tax law loophole is Buffett referring to?
In a recent op-ed, Warren Buffett made a claim about investment managers:
Others own stock index futures for 10 minutes and have 60 percent of their gain taxed at 15 percent, as if they’d been long-term investors.
Now I thought capital gains…
jldugger
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5
votes
2 answers
Are options on popular ETF considered section 1256 contracts?
I want to learn about 1256 contracts and am wondering if options on common ETFs (like QQQ, SPY, DIA) (not futures) are considered section 1256, because these ETF tracks broad market but does not settle in cash?
Raj
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2
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1 answer
Is there a deadline to respond to an IRS request for additional documentation?
When I sent in my 2014 tax return late last year, I also sent in an amendment to my 2013 tax return due to a Section 1256 contract loss carryback (I had Section 1256 gains in 2013 and losses in 2014). I was due to receive a large refund.
I just…
void
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1
vote
0 answers
Tax treatment of underlying asset in 1256 options contract if exercised
I've talked to a tax professional but got a very uncertain answer and can't find any examples online, only examples are of the option expiring worthless rather than in the money.
Example:
1 Bitcoin has been held for over a year prior to selling…
novacog
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1
vote
0 answers
Form 6781 and position close date when becoming different state resident?
It seems that Form 6781 Part 1 does not allow to specify position close date. This is where I believe, for example, VIX option trades should go.
And it seems that TurboTax in case tax filer moved between states mid year, relies on close date…
user4910112
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0
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1 answer
What is line 14 on the form 6781?
On form 6781, I report my profits on stock index options. These profits are both realized and unrealized. Since these options are 1256, I must pay tax on my unrealized gains.
Both realized and unrealized gains are included on my lines 8 and 9.…
Bob
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