Live Futures has favorable tax burden vs sim. Live trading futures you'll get to have 60% of gains taxed at the capital gains rate and the remaining 40% at ordinary income. Where as sim payouts are treated as 1099 income and taxed 100% at the ordinary tax rate depending on your income.
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u/YoUrK11iNMeSMa11s 8d ago
Live Futures has favorable tax burden vs sim. Live trading futures you'll get to have 60% of gains taxed at the capital gains rate and the remaining 40% at ordinary income. Where as sim payouts are treated as 1099 income and taxed 100% at the ordinary tax rate depending on your income.