The good news for traders of Section 1256 contracts is threefold:
1.
60% of the capital gain or loss from Section 1256 Contracts is deemed
to be long-term capital gain or loss and 40% is deemed to be short-term
capital gain or loss. What this means is a more favorable tax treatment of
60% of your gains.
2.
A special loss carry-back election is allowed. Section 1256 contract
net losses can be carried back 3 years instead of being carried forward to
the following year. These loss
