There have been reports of brokerages that add forex totals to Section 1256 totals on the Form 1099. This is technically incorrect by law — the two transactions should be segregated but it may save you taxes and accounting headaches.
These brokerages might be able to argue you elected out of Section 988 when you opened the account, although it’s best to consult with a trader tax expert should something like this occur.
However, if you have large losses and do not wish to opt out of Section 988, this could be a problem. Again, consult a trader tax expert.
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