Posted by rmoore100 on 11th of Nov 2021 at 10:51 am
Regarding futures in the U.S., under current law, gains are
called Section 1256 gains which means 60% of the gain is taxed at
the individual's long-term capital gains rate (usually 15%) and 40%
is taxed at the short-term capital gains rate (which is the same as
the individual's ordinary income tax rate....same rate as wages,
interest income, etc.). The holding period is, like
Matt says, irrelevant.
Posted by kevindeng0727 on 11th of Nov 2021 at 02:16 pm
Thanks for the detailed info Matt and Rmoore100. I was referring
to the tax rates for short term capital gains (honestly I never
held any stock for more than a year), which are pretty high if
treated same as emloyment income.
In Canada, any capital gains is 50% taxable. So 100K net capital
gains would be equivalent to 50K employment income. In China,
capital gain from trading is not even taxed (I am pretty sure US
was once like that too).
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Regarding futures in the U.S.,
$BABA - Matt's Inverse H&S seems to be playing out. ...
Posted by rmoore100 on 11th of Nov 2021 at 10:51 am
Regarding futures in the U.S., under current law, gains are called Section 1256 gains which means 60% of the gain is taxed at the individual's long-term capital gains rate (usually 15%) and 40% is taxed at the short-term capital gains rate (which is the same as the individual's ordinary income tax rate....same rate as wages, interest income, etc.). The holding period is, like Matt says, irrelevant.
Thanks for the detailed info
Posted by kevindeng0727 on 11th of Nov 2021 at 02:16 pm
Thanks for the detailed info Matt and Rmoore100. I was referring to the tax rates for short term capital gains (honestly I never held any stock for more than a year), which are pretty high if treated same as emloyment income.
In Canada, any capital gains is 50% taxable. So 100K net capital gains would be equivalent to 50K employment income. In China, capital gain from trading is not even taxed (I am pretty sure US was once like that too).