Handling Commodity Futures Transactions

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1991-11-22
Authors
Harl, Neil
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Iowa State University Digital Repository
Abstract

In the same manner as other merchants and manufacturers, farm and ranch taxpayers buy and sell commodity futures to hedge against fluctuating prices. Likewise, farm and ranch taxpayers buy and sell commodity futures as speculators. The principal matter of concern from an income tax perspective in the farm and ranch area is the line between hedging and speculation.

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