Taxes on Commodity Future Trading

*At the end of the calendar year, net gains or losses on the contract are treated as 60% long term and 40% short term, regardless of the actual breakdown of the gain or loss.
*Futures gains and losses are considered capital gains or losses, regardless of the tax character of the underlying asset.
*Commodities are marked to market at the end of the year. This means that if you have open positions, they will be calculated as profits and losses as if they were closed positions using the price on the final day of the year.

*Receive a 1099-B Form from your broker before January 31
*Use an IRS Form 6781: Gains and Losses From Section 1256 Contracts and Straddles to submit your information for tax purposes.
*The IRS considers commodities and futures transactions as 1256 Contracts.
*Plug numbers from F6781 into your Schedule D Form—Capital Gains and Losses.
*After the Schedule D worksheet is completed, transfer the numbers to your 1040 Form and you are done.

Filing Taxes on Commodities Trading
https://www.thebalance.com/filing-tax...

IRS Form 6781:
https://www.irs.gov/pub/irs-pdf/f6781...

IRS Form 8949 is a tax form primarily used for reporting sales and exchanges of capital assets.
https://www.thebalance.com/reporting-...

E-Mini S&P 500 (ES=F)
https://finance.yahoo.com/quote/ES=F?...

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