
I had some strange calculations happen on my 1099-B where losses and gains were not adding up. I had come to figure out I may have been subject to section 1092 and section 1256 straddle rules whereby a loss may be deferred. I had consulted an AI (ChatGPT) and I wasn’t entirely sure if this sounded correct, but I outlined one of the key strategies I have been using to make small profits daily, wondering if this is causing the offset. I actually focus entirely on this strategy trading throughout the year to see if my results worked out well. I was going to focus on exclusively doing this, this year so I didn’t want to end up with a surprise tax bomb at the end of the year.
Mainly my question here for everyone is, ChatGPT says in this scenario no situation ends up with a loss being deferred, as AI’s tend to sometimes make wrong assumptions, is this true?
I know this may be something that belongs as a question in the questions thread, but I’ve tried to get an answer there and gotten no success.
Here is the link to the question and answer:
https://chatgpt.com/share/69f7cfff-dda0-83e8-a08b-8147391f30c4
Section 1256 contracts, straddle rules, deferred losses for tax purposes
byu/fomoandyoloandnogrow inoptions
Posted by fomoandyoloandnogrow