IRS, Tax related strategies--Traders Message Board

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Strategies & Market Trends : IRS, Tax related strategies--Traders

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To: m-top who wrote (852)	5/12/1999 3:35:00 PM
From: Kaye Thomas	Read Replies (2) of 1383

I can confirm that you get 60-40 treatment on "section 1256 contracts," which include index futures. But I don't know what math you use to come up with a maximum rate of 25%. If you're in the 39.6% bracket, unless I've messed up on my HP 12C, you would pay federal tax at a rate of 27.84% on 60-40 income, and still pay a state tax on top of that. It's a good deal, but not as good as you message suggests. Meanwhile, I suspect that's a harder market to trade successfully because a lot more brainpower (and computer power) has been devoted to analyzing these babies than any one stock, and there are fewer amateurs out there to feed the sharks. Kaye Thomas, author Fairmark Press Tax Guide for Investors fairmark.com

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