A US Citizen and Resident in Texas is a Bitcoin Futures trader who has nothing to do with the Case Study found in Part 1 of this final exam makes the following Bitcoin Futures trade during the year 2023. The trader buys the December 29,2023 Bitcoin futures contract on December 01 for $30,100.00. A few days later, December 07, the price rallies to $31,100.00. The trader sells and closes out the position and takes a profit. There are no fees or commissions on the trades. 

What Internal Revenue Code Section(s) applies to this trade? Describe how it would be taxed.

Answer rating: 100% (QA)

The following is a simplified interpretation of the US tax code as it applies to Bitcoin futures tra... View the full answer