Do wash-sale rules apply to futures?
Learn when U.S. wash-sale rules do and do not apply to futures losses, how commodity futures differ from securities futures, and which Section 1256 and straddle rules remain relevant.
Direct answer
For U.S. federal tax purposes, wash-sale rules generally do not apply to losses from commodity futures contracts. They can apply to contracts on stock or securities, and separate Section 1256 or straddle rules may still affect the loss.
Start by classifying the futures contract
IRS Publication 550 separates commodity futures from securities futures. A securities futures contract is for future delivery of a single security or a narrow-based security index.
Many regulated futures contracts fall under Section 1256, but securities futures generally follow different rules unless a specific exception applies. Do not decide tax treatment from the word “futures” alone.
The related U.S. futures tax guide explains the Section 1256 classification and year-end mark-to-market process.
Commodity futures are outside the wash-sale loss rule
Publication 550 states that wash-sale rules do not apply to losses from sales or trades of commodity futures contracts and foreign currencies.
That means a 30-day repurchase does not, by itself, turn a commodity-futures loss into a wash sale. The familiar stock rule is not automatically imported into a commodity futures ledger.
Suppose a hypothetical trader closes a commodity futures position for a $1,200 loss and opens the same commodity futures contract again 10 days later.
Under the wash-sale rule alone, the 10-day repurchase does not disallow that $1,200 loss. This example isolates one rule; Section 1256, straddle, hedge, and other tax rules can still change reporting.
Securities futures require a different test
Publication 550 says wash-sale rules apply to losses from contracts and options to acquire or sell stock or securities.
A securities futures contract covers a single security or narrow-based security index. Publication 550 also gives special short-sale treatment to a securities futures contract to sell.
So a securities futures loss should not be assumed exempt merely because the instrument is called a future. Review the underlying, contract type, replacement exposure, and broker tax classification.
The options wash-sale guide shows the related 30-day and substantially-identical tests for stock and securities contracts.
Section 1256 and wash sales solve different tax questions
Wash-sale rules determine whether a loss on stock or securities is deferred after substantially identical replacement activity. Section 1256 determines mark-to-market and character for qualifying contracts.
A commodity futures contract can therefore be outside the wash-sale rule yet still be a Section 1256 contract reported under its own year-end rules.
For qualifying Section 1256 contracts, Form 6781 is generally the main federal form. Securities transactions subject to wash-sale adjustments can instead involve Form 8949, depending on the product and reporting facts.
Do not use one form label as proof of classification. Reconcile the contract, broker statement, and current IRS instructions first.
A straddle can defer a loss even without a wash sale
Publication 550 specifically points readers from commodity-futures wash-sale rules to the separate loss-deferral rules for straddles.
If one position substantially offsets another, a straddle rule can delay recognition of part of a loss even when the wash-sale rule itself does not apply.
A business hedge can also receive different character from an investment position. Keep hedge identification, offsetting positions, and any tax elections with the trade records. [!WARNING] No wash sale does not mean no tax adjustment Commodity futures can be outside the wash-sale rule while Section 1256, straddle, hedge, or other rules still change timing or character. Test those rules separately before filing.
Build a year-end futures tax checklist
For each futures loss, record the exact symbol, contract month, underlying, whether it is a commodity or securities future, and whether the broker classifies it as Section 1256.
Also record replacement trades within 30 days, offsetting positions, hedge status, year-end open positions, Form 1099-B details, and any amounts reported for Form 6781 or Form 8949.
As of September 18, 2026, the completed IRS Publication 550 and related filing instructions available for this topic are still the 2025 revisions. Verify the final 2026 materials before filing a 2026 return. [!TRYMARK] TryMark futures tax checkpoint At the next tax review, classify each loss before checking dates. Separate commodity futures, securities futures, Section 1256 status, replacement trades, and offsetting positions in one ledger.
Common questions
If I sell a commodity future at a loss and buy it back the next day, is that a wash sale?
Under the U.S. federal wash-sale rule described in Publication 550, a loss from a commodity futures contract is not subject to the wash-sale rule merely because the same contract is repurchased within 30 days.
Do all index futures avoid wash-sale rules?
Do not decide from the word “index.” Broad-based regulated futures and narrow-based securities futures can fall into different tax categories. Confirm the exact contract and broker tax classification.
Can a straddle rule defer my futures loss even when there is no wash sale?
Yes. Publication 550 treats straddle loss deferral as a separate set of rules. An offsetting position can delay a loss even when commodity-futures wash-sale rules do not apply.
Which tax form is used for these futures losses?
Qualifying Section 1256 contracts generally use Form 6781. Securities transactions with wash-sale adjustments can involve Form 8949. The exact form depends on contract classification and taxpayer facts.