Section 1256 Contracts Tax Calculator
Estimate U.S. Federal Tax (2024) based on the 60/40 Rule
Tax Estimate Summary (2024 Federal)
60% Long-Term Capital Gain/(Loss):
40% Short-Term Capital Gain/(Loss):
Est. Tax on Short-Term Portion:
Est. Tax on Long-Term Portion:
Total Estimated Tax on Sec. 1256 Gain:
Combined Taxable Income (Est.):
Effective Tax Rate on Sec. 1256 Gain:
Note on Net Loss:
- The calculated long-term and short-term losses can be used to offset other capital gains (if any).
- If your total capital losses exceed your total capital gains for the year, you can generally deduct up to $3,000 of the net capital loss ($1,500 if Married Filing Separately) against other types of income.
- Any remaining net capital loss can be carried forward to future tax years.
- This tool does not calculate tax savings from this loss as it depends on your complete tax profile.
Important Notes & Assumptions:
- Estimates are based on 2024 U.S. Federal tax laws and brackets. State and local taxes are not included.
- The 60/40 rule (60% long-term, 40% short-term) is applied to the net gain or loss from Section 1256 contracts.
- "Other Taxable Income" is assumed to be your taxable income after all other deductions but before this Section 1256 gain/loss. It's assumed this income does not contain other capital gains/losses unless you've manually factored them in.
- This calculator does not account for interactions with other capital gains/losses you may have, which could affect your overall tax liability. The Net Investment Income Tax (NIIT) of 3.8% may also apply to some or all of this income if your Modified Adjusted Gross Income exceeds certain thresholds, but is not calculated by this specific tool.
- This tool is for informational purposes only. Tax laws are complex. Consult with a qualified tax professional for advice specific to your situation.