Sep
29
newport229
I invest in commodity and financial futures and would like to know whether I need to pay quarterly estimates taxes based on appreciation in my account value at the end of each quarter. This investment can be quite volatile so a gain at the end of Quarter 1 may quickly disappear in Quarter 2. I don’t want to pay taxes that may be refunded eventually.
I invest in commodity and financial futures and would like to know whether I need to pay quarterly estimates taxes based on appreciation in my account value at the end of each quarter. This investment can be quite volatile so a gain at the end of Quarter 1 may quickly disappear in Quarter 2. I don’t want to pay taxes that may be refunded eventually.
Thanks for any help!
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2 Responses to “Tax Help: Estimated Taxes Required for Futures Accounts?”
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You only have to pay tax on the net results of your trades (gains and losses), not the value of the futures contracts that you hold.
You need to get form 2210 and plug your actual numbers into each “quarter”–then pay the amount the IRS will require you to have paid to avoid a penalty. Then when you file for 2008, move the numbers to the 2008 form and file it with your tax return.