Holders of stock index futures for 10 minutes have 60 percent of their gain taxed at 15 percent, as if they were long-term investors.

Judged under US tax law as of 2011-08-15. True: IRC Section 1256 treated gains on regulated futures contracts, including stock index futures, as 60% long-term and 40% short-term whatever the holding period, and the maximum long-term capital gains rate then was 15%, so a 10-minute holder had 60% of the gain taxed at up to 15%. Mostly true: the 60/40 rule applied as described but with a minor detail off, such as 15% being only the top rate. Mixed: the 60/40 treatment applied but to a materially different class of instruments or at a different rate. Mostly false: a real rule is substantially misdescribed. False: no such treatment applied to stock index futures in 2011.

Set before the research began.

1. E1 [PDF] Gains and Losses From Section 1256 Contracts and Straddles - IRS Internal Revenue Service · 12 November 2025

   “If your section 1256 contracts produce capital gain or loss, gains or losses on section 1256 contracts open at the end of the year, or terminated during the year, are treated as 60% long term and 40% short term, regardless of how long the contracts were held.”

2. E2 [PDF] Gains and Losses From Section 1256 Contracts and Straddles - IRS Internal Revenue Service · 12 November 2025

   “A section 1256 contract is any: • Regulated futures contract, • Foreign currency contract, • Nonequity option, • Dealer equity option, or • Dealer securities futures contract.”

3. E3 Federal Capital Gains Tax Collections, Historical Data (1954-2018) Tax Foundation · 15 August 2025

   “| 2011 | 404,344 | 56,682 | 14.0 | 2.59 | 15.00 |”

4. E4 Form 6781 (2025), Gains and Losses From Section 1256 Contracts and Straddles, with instructions Internal Revenue Service

   “If your section 1256 contracts produce capital gain or loss, gains or losses on section 1256 contracts open at the end of the year, or terminated during the year, are treated as 60% long term and 40% short term, regardless of how long the contracts were held.”

5. E5 Page 2150 TITLE 26—INTERNAL REVENUE CODE § 1256 govinfo.gov (U.S. Government Publishing Office, 2011 U.S. Code, Title 26) · 2011

   “(B) long-term capital gain or loss, to the extent of 60 percent of such gain or loss, and”

6. E6 Page 2150 TITLE 26—INTERNAL REVENUE CODE § 1256 govinfo.gov (U.S. Government Publishing Office, 2011 U.S. Code, Title 26) · 2011

   “(A) short-term capital gain or loss, to the extent of 40 percent of such gain or loss, and”

7. E7 2011 Publication 550 Internal Revenue Service · 17 January 2012

   “Under the marked to market system, 60% of your capital gain or loss will be treated as a long-term capital gain or loss, and 40% will be treated as a short-term capital gain”

8. E8 Congress Enacts Tax Cut Extensions Journal of Accountancy (AICPA) · 1 January 2011

   “continuing the lowered 15% long-term capital gains tax rate (0% for taxpayers in the 10% and 15% ordinary income tax brackets)”

The 2011 US Code text of IRC §1256 treats gain or loss on section 1256 contracts as 60 percent long-term and 40 percent short-term (E5, E6). IRS guidance says this split applies regardless of how long the contracts were held, and lists regulated futures contracts as section 1256 contracts (E1, E2, E7). The criteria themselves state that stock index futures are regulated futures contracts; the evidence does not name them directly. The Journal of Accountancy, in a January 2011 article, reports the continuation of the lowered 15% long-term capital gains tax rate (E8), and a Tax Foundation table row for 2011 ends with a value of 15.00, which fits that rate (E3). So a 10-minute holder had 60% of the gain taxed at up to 15%, which is the criteria's definition of true.