Commodities Futures

Commodities Futures

Commodities Futures are.

contracts in which sellers promise to deliver a given commodity by a certain date at a predetermined price. The price is agreed to by open outcry on the floor of the commodity exchange. A commodity futures contract specifies the item, the price, the expiration date, and a standardized unit to be traded (e.g., 50,000 pounds). Commodity contracts may run up to 1 year; tax law requires that they be marked to market at the end of each year. Of any gains or losses, 60% is long-term, 40% short-term. Former IRC (check if this IRC provision is current here) §1233.

U.S. and other Developed Countries International Tax Meaning

Contracts, traded on recognized futures markets, in which sellers promise to deliver a given commodity by a certain date at a predetermined price.


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