How are futures taxed the IRS applies the 60/40 rule for most

The IRS applies the 60/40 rule for most U.S.-traded stock index futures when calculating "how are futures taxed". This hybrid method lowers effective rates versus standard short-term trades. With tech sector futures leading momentum, tax efficiency becomes part of strategic allocation. The reality for most retirees is that they won't be spared the unpleasant Medicare surprise coming next year. Attention Investors: Prevent unauthorised transactions in your Demat account by updating your mobile number with your depository participant. Receive alerts on your registered mobile number for debit and other important transactions in your Demat account directly from CDSL on the same day. Prevent unauthorised transactions in your Trading account by updating your mobile numbers/email addresses with your stock brokers. Receive information on your transactions directly from the Exchange on your mobile/email at the end of the day. Issued in the interest of investors. KYC is a one-time exercise while dealing in securities markets - once KYC is done through a SEBI-registered intermediary (broker, DP, Mutual Fund, etc.), you need not undergo the same process again when you approach another intermediary. As a business, we don’t give stock tips and have not authorised anyone to trade on behalf of others. If you find anyone claiming to be part of Upstox or RKSV and offering such services, please send us an email at [email protected] and [email protected] . For calendar spread strategies, "how are futures taxed" matters because gain recognition timing impacts cash flow projections. In oil futures, steep contango adds complexity under current tax rules.