Are Options on Cryptocurrencies Ever Considered Section 1256 Contracts? ▴ Learn

Are Options on Cryptocurrencies Ever Considered Section 1256 Contracts?

Cryptocurrency options can be considered Section 1256 contracts if they meet the criteria of being a "non-equity option" and are traded on a "qualified board or exchange." For instance, options on Bitcoin futures traded on a regulated exchange like the CME Group generally qualify. However, options on crypto spot markets or those traded on unregulated offshore exchanges typically do not qualify.

What Distinguishes an Equity Option from a Non-Equity Option for Tax Purposes?

Are All Cryptocurrency Derivatives Treated as Section 1256 Contracts?

Which Specific Derivatives Are Typically Classified as Section 1256 Contracts?

What Types of Options Contracts Qualify as Section 1256 Contracts?