Jones is an employee of Super Automobiles dealing with automobiles. In January 2015 he entered into a futures contract with a futures broker (a member of a recognised futures exchange) and closed the contract after 2 months after successfully making substantial gains of $500,000. He has never made any subsequent contract.
In May, Jones was knocked down by a car driven by Ruth. As a result of the accident Jones was not able to continue his work and had to undergo extensive medical care and physiotherapy. He sued Ruth for loss of earning capacity, non pecuniary loss, medical and other related cost arising from the accident. Ruth was covered by ABC Insurance Company, made a lump sum payment for Jones claims of $1 million.
Advice Jones of his tax consequences on the above events