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How commodity derivatives are taxed

Posted on 05 May 2011

It is important to keep the difference from security derivatives in mind when transacting in commodity derivatives, so that you are not caught unawares when you realise that you have to pay tax on income higher than your actual income, on account of the inability to set off certain losses from commodities derivatives against your other derivatives trading income.
With the boom in commodity prices worldwide, trading in commodity derivatives has attracted more and more interest, with many seeking to benefit from rising commodity prices. Is the tax treatment of commodity derivatives the same as the tax treatment of security derivatives?………………………………………Full Article: Source


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VRS - who has written 36151 posts on Opalesque Commodities Briefing.


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