Trading ES Futures and Taxes...

[Armand 10]

I'm wondering if anyone trading ES futures does their own taxes. This is the first year that I have traded live and was wondering about taxes. I have not ruled out going to a tax professional, however, before I do I would like to see what others have done. I think I understand 1256 contracts and the 60/40 rule, but I am not sure if things like mark to market and wash sales, etc. apply. I never hold a position over night. The rest of my taxes are not complicated...I'm just not sure how to handle the future trading part...Any help is appreciated. Thanks, Armand.

[brownsfan019 17]

Armand,

Just doing the futures part is not hard actually assuming your broker provides a consolidated tax form to use. The very basic way to do them is to just enter the profit/loss where section 1256 contracts go. If you use a program like TurboTax, it is there but you have to hunt for it since most people will not use the 1256 part.

 

Obviously a qualified tax pro can ensure it's done properly and also look for business expenses to write off, etc. But if you just want to enter the P&L, you can easily do that yourself.