Taxes & Rules
Taxes & Regulation
Taxes & Regulation explains how governments treat futures in the two places most of our readers live: the United States and Canada. The US Section 1256 60/40 rule and year-end mark-to-market, how the CRA treats futures gains, who regulates futures markets and brokers, how customer money is (and isn't) protected, and the position limits and reporting rules that apply to large traders. Every article says when it was last checked and points to the official source. None of it is tax or legal advice.
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How Futures Are Taxed in the US: Section 1256, the 60/40 Rule, and Form 6781
How the IRS taxes futures: the Section 1256 60/40 split, year-end mark-to-market, Form 6781, the loss carryback election, and worked examples for 2026.
Read this first →More in Taxes & Regulation
How Futures Are Taxed in Canada: Capital Gains vs Business Income
How the CRA taxes futures: capital vs income treatment, the hedger and speculator rules in IT-346R, the 50% inclusion rate, losses, and worked examples.
Read the explainer →How Futures Markets Are Regulated in the US and Canada
Who polices futures: the CFTC, NFA and exchanges in the US; provincial regulators, the AMF, CIRO and the Montreal Exchange in Canada, with how to check a firm.
Read the explainer →How Futures Customer Funds Are Protected (and Why SIPC Doesn't Cover Them)
How futures account money is protected: CFTC segregation rules, the residual interest rule, why SIPC excludes futures, CIPF in Canada, and what MF Global taught.
Read the explainer →Position Limits and Large Trader Reporting in Futures Markets
How futures position limits work: the CFTC's 2020 rule on 25 contracts, spot-month and all-months limits, hedge exemptions, accountability levels, and reporting levels.
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