At year-end, taxes on a futures position ________.
A) must be paid if the position has been closed out
B) must be paid if the position has not been closed out
C) must be paid regardless of whether the position has been closed out or not
D) need not be paid if the position supports a hedge

Question

Quizplus · Accepted Answer

Taxes on futures positions are typically marked to market at year-end, meaning they are taxed on unrealized gains or losses regardless of whether the position has been closed out.

At Year-End, Taxes on a Futures Position ________