Section 1256 Report -This report is for those users who want to get the information of Unrealized Gain/Loss amount and 60% long term amount and 40% short term amount auto-calculated by TradeMax as an attachment to Section 1256 contract,

Definition of Section 1256 contracts Any of several types of futures and options contracts that are subject to a special tax rule of the Internal Revenue Service. Named for a section of the IRS Code, these contracts must generally be treated as if they are sold at fair market value on the last business day of the tax year. Section 1256 contracts include regulated futures contracts, foreign currency contracts, non equity options, dealer equity options, and dealer securities futures contracts.

General rule

For purposes of this subtitle—

  • Each section 1256 contract held by the taxpayer at the close of the taxable year shall be treated as sold for its fair market value on the last business day of such taxable year (and any gain or loss shall be taken into account for the taxable year),
  • Proper adjustment shall be made in the amount of any gain or loss subsequently realized for gain or loss taken into account by reason of paragraph (1),
  • Any gain or loss with respect to a section 1256 contract shall be treated as—
  • (A) Short-term capital gain or loss, to the extent of 40 percent of such gain or loss

    (B) Long-term capital gain or loss, to the extent of 60 percent of such gain or loss

  • If all the offsetting positions making up any straddle consist of section 1256 contracts to which this section applies (and such straddle is not part of a larger straddle), sections 1092 and 263 (g) shall not apply with respect to such straddle.

The following will tell you how to run a Sect.1256 Report.

  1. Select the item Sect.1256 Report, you will get the following window:
  2. The default date is the last day of specific finance year. You can set the date or just click OK Button, the date you selected will influence the market price of the generated report .

  3. After you selected the Position Holding Date, the following window will display :

The window will display the holding security, click Download Button to download the price on specific day you selected in previous step.

  • After downloading the price of the holding security, Unrealized Gain/Loss Report is generated as below:
  • Basic Function
    1 Report data information including Data Source, Create Date, Tax Payer and Page of Total

    Display market value, unrealized gains/losses, the percentage of gains for all transactions in the current account and current period.

    3 Display the unrealized Gain& loss total amount, 60% long term amount, 40% short term amount.

    The following grid give a detailed introduction about the report .


    The security name

    2.Open Date The purchase date of the security
    3.Action Action name of the trade
    4.Qty( Quantity) The quantity of security you purchase
    5.O-Price The original security price
    6.Open Amount The amount auto-calculated by O-Price*Qty(Quantity)
    7. Market Price The price of specific day you selected to download in Price window
    8. Market Value The amount auto-calculated by Market Price* Qty(Quantity)
    9.Gain/Lose The amount auto-calculated by Market Value-Open Amount
    10. Gain %
    The percentage auto-calculated by Gain&lose/ Open Amount