Section 1256 contracts are handled differently than other securities filed on Schedule D
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There are no IRS requirements to itemize your futures trades to file your taxes.
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The wash sale rule does not apply.
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Total gain/loss for futures is split 60/40 - 40% is considered short term capital gains, 60% is considered long term capital gains.
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Section 1256 contracts held open at year end are marked-to-market at fair market value.
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Section 1256 contracts are reported on Form 6781, with certain totals reported on the Schedule D.
TradeLog was primarily designed for reporting securities on the Schedule D, and will exclude section 1256 contracts (those flagged as Futures in TradeLog) from other securities. Often brokers report the net gain or loss for section 1256 contracts, including marked-to-market adjustments - therefore it may be easiest to use that total to complete form 6781. Remember - you do not need a trade detail of Section 1256 contracts for the IRS, you only need the total gain or loss (after marking-to-market all year-end open positions)!
Many users have requested to use TradeLog generated reports for reporting Section 1256 contracts, please select the following option that applies to you for further instructions:
