How do I pay income tax on ForEx earnings?
note: "forex taxes" applies u.s. traders only. foreign investors not residents or citizens of united states of america not have pay taxes on foreign exchange profits! forex trading taxation - definition , overview: ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,... more , more investors on world accessing largest financial markets online through personal computers. demand surges foreign exchange trading, more , more u.s. traders have deal taxation issues @ end of year. forex: taxed futures or cash? currency traders involved in forex spot (cash) market, can choose taxed under same tax rules regular commodities [irc (internal revenue code) section 1256 contracts] or under special rules of irc section 988 (treatment of foreign currency transactions). irc 988 applies cash forex unless trader elects opt out. advantage of section 1256 currency traders under section 1256, forex traders can have significant advantage on stock traders. reporting capital gains on ...