Do corporations also receive the favorable 60/40 rate of taxation on futures profits, or just individuals?
I know that profits from trades of contracts defined in IRC § 1256 (futures, non-equity options, etc.) are taxed 60% long term capital gains and 40% short term gains. That rule applies to individual traders. Does it also apply to corporate trading accounts? Also, do the state tax boards (for my purposes, California) honor the 60/40 treatment like the Feds?
Corporate income is all the same. There is no differentiation between capital gains (long or short term) and any other income.
Most states don’t differentiate between capital gains and ordinary income or long and short term gains when it comes to the tax rates involved. CA is one such state, however CA does have some different rules in how gains are calculated. See the instructions for FTB Form 540, Schedule D for details on those differences.
Corporate income is all the same. There is no differentiation between capital gains (long or short term) and any other income.
Most states don’t differentiate between capital gains and ordinary income or long and short term gains when it comes to the tax rates involved. CA is one such state, however CA does have some different rules in how gains are calculated. See the instructions for FTB Form 540, Schedule D for details on those differences.
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