Trade Futures or S&P 500 Index Options? The IRS Treats 60% of Your Gains as Long-Term, Even on a Day Trade

A single tax code section can legally shift most of a day trader's short-term gains into a lower tax bracket, and the IRS baked it in decades ago for futures and certain index options. The catch is knowing exactly which contracts qualify and what happens to your unrealized positions at midnight on December 31.