Many forex futures/options traders make several transactions per day. Of these trades, up to 60% can be counted as long-term capital gains/losses. When trading stocks (held less than one year), investors are taxed at the 35% short-term rate.

Mar 13, 2011 – Before I begin, I gotta throw out the necessary disclaimers. First, I am not a tax professional, just a fellow citizen of the FX world trying to help my fellow FX fanatics understand one of the most confusing aspects of the Forex trading business: taxes! Therefore, I am not making any recommendations on how …

Forex Tax Treatment. Get the best of both worlds with forex taxes: Ordinary losses in Section 988 or elect capital gains for a chance to use lower 60/40 rates in Section 1256(g). shutterstock_forex copy. “Forex” refers to the foreign exchange market where participants trade currencies, including spot, forwards or …

May 23, 2013 – Section 988 transactions, the default method of taxation for currency traders, treats the gains or losses from forex transactions as ordinary gains or ordinary losses. If you have forex gains, they are taxed as ordinary income, subject to which ever tax bracket you fall under.

By Jason.r Contributed by forexfraud. Most new traders never have concern themselves with finding out the specifics of taxes in relation to forex trading. All of a new trader's focus is simply on learning to trade profitably! However, at some point, traders must learn how to account for their trading activity and how to file …