Does the Realization of a Gain/loss on a Future Depend on the Withdrawal of Funds from the Exchange? ▴ Learn

Does the Realization of a Gain/loss on a Future Depend on the Withdrawal of Funds from the Exchange?

No, the realization of a gain or loss for tax purposes does not depend on the withdrawal of funds from the exchange. A gain or loss is realized when the contract is closed (settled, expired, or sold) or, for Section 1256 contracts, when it is marked-to-market at year-end.

The funds are considered constructively received for tax purposes.

If a Future Settles on December 31st, When Is the Gain or Loss Realized for Tax Purposes?

How Is the “Mark-to-Market” Rule Applied to Cryptocurrency Futures for Tax Purposes?

How Does the Timing of Settlement for a Crypto Future Impact the Tax Year of the Gain or Loss?

Does Impermanent Loss Become Permanent upon Withdrawal from the Liquidity Pool?