Part 5. Tax on Futures and Options
Profits from Futures trading are generally taxed as 60% long term capital gains and 40% short term capital gains, no matter how long you have held the contract.
Tax rules on Options trading are the same as on stocks. Profits on Options held less than 1 year are typically taxed as short term capital gains (the same as ordinary income) and losses are short term capital losses.
Income you gained from selling an option to another investor is taxed as short term gain.
Next, we will discuss tax on gold investment.