§1234B Gains or losses from securities futures contracts

Summary

Treat gains or losses from selling, exchanging, or ending a securities futures contract as if you had sold or exchanged the underlying security. The tax type (for example, capital or ordinary) is the same as the underlying asset would have for you. This does not apply to contracts already treated as the property listed in section 1221(a)(1) or (7), or to income that other rules treat as something other than capital gain. Unless rules under section 1092(b), this rule, or section 1233 say otherwise, any gain or loss that is capital must be treated as short-term. A "securities futures contract" means a "security future" as defined in section 3(a)(55)(A) of the Securities Exchange Act of 1934 (as of the enactment date). For tax purposes, a securities futures contract is not a commodity futures contract. The Treasury Secretary must write rules to apply these points, and special dealer rules are in section 1256.