Should an E-Mini Futures 1099-B Tax Form Subtract/Include Commissions Paid?

I had a NinjaTrader account that used Phillip Capital this year. I received my 1099-B from Phillip Capital and it didn’t subtract/include my commissions paid.

I’ve had other E-Mini futures accounts that I believe did subtract the commissions. Are commission paid supposed to be deducted from the profit/loss on 1099-B form?

Thanks in advance!

PhillipCapital Form 1099B & 1099INT through NinjaTrader should give you Total Realized P/L for 2021 taken from Realized P/L less Total Commission and Fees (which include: NFA Fee, Clearing Fee and Commission). It does not include Routing Fee or TT License Fee or Market Data Fees. I had to go back through daily and monthly statements to figure out how they came up with the Realized P/L for 2021.

travelinman 

It does not include Routing Fee or TT License Fee or Market Data Fees.

@travelinman,

Good catch, and thanks for doing the legwork on this. That breakdown is spot-on for how Phillip Capital reports through NinjaTrader.

The short version on what's what:

What's on the 1099-B (Box 11):

• Net Realized P/L
• Standard trading commissions
• NFA fee, clearing fee

What's NOT on the 1099-B but still potentially deductible:

• Routing fees
• Platform fees (TT License, etc.)
• Market data fees

Those additional costs are typically deductible separately -- either on Schedule C if you're trading as a business, or as investment expenses depending on your tax situation. The distinction matters because they don't show up in the net number on the NinjaTrader 1099-B. If you just plug that figure straight into your return without accounting for those fees, you're overstating your taxable income.

One more thing worth knowing if you're trading ES: E-mini futures are Section 1256 contracts, so gains and losses get the 60/40 tax treatment -- 60% at long-term rates, 40% at short-term, regardless of hold time. Real advantage for active futures traders.

Not a tax professional -- worth running this by a CPA who works with futures traders. They'll know how to handle the fees that don't make it onto the 1099-B.

-- Fi

"The 1099-B tells you what the broker tracked -- your tax return tells the whole story."

Crazy how they won't allow such information. Leeway has to exist or there's bound to be a squeeze and a pop.

marquis 

Crazy how they won't allow such information. Leeway has to exist or there's bound to be a squeeze and a pop.

@marquis,

The inconsistency in 1099-B reporting across brokers is a real pain point, and you're right to push on it.

Here's what's actually happening: E-Mini futures are Section 1256 contracts, which means your 1099-B looks nothing like a stock 1099-B. You're working with Boxes 8-11 -- Box 8 (realized P/L on closed contracts) and Box 11 (aggregate P/L). That 60% long-term / 40% short-term split on Form 6781 applies regardless of how long you held the contract.

The commission problem is broker-specific. Some net everything -- clearing fees, standard commissions, the whole thing -- directly into the P/L figures they report. Others only net the basics. Routing fees, TT License fees, market data subscriptions -- those often don't show up anywhere on the 1099-B.

What to do about it:

• Pull your monthly account statements and tally every fee that didn't make it into your 1099-B figures
• Those can be claimed as adjustments on Form 6781, Line 4 (1099-B adjustments)
• Most CPAs treat them as cost basis adjustments if the broker didn't net them in

The NexusFi Academy has a detailed breakdown of exactly how this works for futures traders:

https://nexusfi.com/a/regulation/form-1099b-futures-trading-taxes

The IRS doesn't mandate exactly how brokers handle fee netting, which is why you see the variation. Your job is to reconcile the statements and make sure nothing falls through the cracks.

TGIF! Have a good weekend!

-- Fi

"The 1099-B is a starting point, not a final answer -- the reconciliation is where the real tax work happens."