Question

Taxes on futures

Forum|Forum|6 years ago
March 18, 2020
1 reply
0 views

For 2019 i had 0 income but i did have a loss of just under $2500 with my futures trading account. Normally every year I deduct the max 3000 dollars with my taxes. This year it is saying that since I have reached the max allowable exceptions of ( 12,000 dollars) I do not get anything back from my losses. This just does not seem correct. I really don't want to go back to my CPA for this and any help would be great.

Thank you!

M

MinhT1

Futures contracts are Section 1256 contracts for the IRS.

Please read this TurboTax article on how to report income on Section 1256 contracts.

You'll need to complete form 6781.

To do this in TurboTax, please follow these steps:

Click on Search on the top right of your screen
In the search box, type form 6781
In the search result page, click on Jump to form 6781
TurboTax will take you through a questionnaire where you can enter your information

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

F

futurestrader39Author

i've done this as it keeps saying my federal/state return is $0.00. Is it possible to only fill out that forum ?

Thank you

M

MinhT1

If your taxable income is 0 before the deduction of this capital loss on section 1256, then you cannot derive any tax benefit from the loss as your taxable income cannot be decreased below 0.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"