Futures traders get 60% long-term / 40% short-term tax treatment regardless of holding period. See exactly how much you save vs trading stocks.
/ES /NQ /MESSection 125660/40 RuleNo Wash Sales
Your Futures Trading Numbers
Net profit or loss across all Section 1256 contracts (/ES, /NQ, /CL, etc.)
$
How Section 1256 Works
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The 60/40 Rule
60% of futures gains are taxed at long-term rates. 40% at short-term rates. Regardless of holding period — even intraday.
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No Wash Sales
Section 1256 contracts are completely exempt from wash sale rules. Sell at a loss, rebuy immediately — fully deductible.
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Auto Mark-to-Market
Open futures positions are automatically marked to market on Dec 31. No election needed — it applies automatically.
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3-Year Loss Carryback
Section 1256 losses can be carried back 3 years to offset prior-year gains — a rare and valuable tax feature.
The 60/40 split, the year-end mark, and the 3-year carryback modelled above are the IRS's rules, not this calculator's assumptions — they are set out on the IRS's About Form 6781, Gains and Losses From Section 1256 Contracts and Straddles page, which is also where §1256 gains are typically reported. Whether a particular contract qualifies can turn on facts specific to the instrument.
⚠️ Disclaimer: Estimates only. Actual tax depends on your complete income picture. Consult a licensed CPA.
Your Section 1256 Savings
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Section 1256 vs Stock Trading
Your tax advantage breakdown
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Enter your futures gains and click Calculate to see your Section 1256 tax advantage.