How Section 1256 Contracts Work To explain how the tax treatment for a Section 1256 contract works, let’s take a look at a more-detailed example. Suppose an investor buys a regulated futures ...

Section 1256 contracts include certain regulated futures contracts, foreign currency contracts and non-equity options. These contracts receive a unique tax treatment under the IRS code and are ...

Section 1256 contracts include certain regulated futures contracts, foreign currency contracts and non-equity options. These contracts receive a unique tax treatment under the IRS code and are subject ...