Question

Taxation and Expensing of Futures contracts (Day-Trading)

Forum|Forum|2 years ago
April 24, 2024
1 reply
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2 Questions:

1) Does Turbo Tax automatically apply the 60/40 tax rule for futures profits/losses when filing? if so, how can I see that Turbo Tax has correctly applied it?

2) If I'm not Mark to Market / Trader Tax Status, can I still expense the commissions/market data from brokerages?

Ask the Experts - Refund II - April 2024

J

JotikaT2

You can report your expenses from your activity as a business on Schedule C, self-employed income and expenses. You are technically considered to be running a business regardless of whether you actually made the mark to market election or not. Please see this link for additional guidance on how to enter your transactions within TurboTax.

For guidance on how to enter them in TurboTax, please see the steps provided by JohnW152 in this thread. If you are in the Desktop version of the software, you can click on forms on the top right to view Form 6781.

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