What is the 60/40 tax treatment for futures in the cryptocurrency industry?

1 answers

• Dec 15, 2021 · 3 years ago
  The 60/40 tax treatment for futures in the cryptocurrency industry is a tax rule that applies to gains and losses from futures trading. It means that 60% of the gains or losses are taxed at the long-term capital gains rate, while the remaining 40% are taxed at the short-term capital gains rate. This treatment is based on the assumption that 60% of futures trading is considered long-term investment and 40% is considered short-term speculation. The long-term capital gains rate is typically lower than the short-term rate, which can result in tax savings for traders and investors. However, it's important to keep in mind that tax laws can vary by jurisdiction and it's always a good idea to consult with a tax professional to understand how this treatment applies to your specific situation.
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