I’m bumping this because it’s a most-know for me, and I’m surprised that more people haven’t asked this question. I’ve read the previous posts, but I wonder if anything has chagned.
Has anybody recently gone through filing taxes with a forex gain or loss?
The best information I have seen thus far has been from Robert Green which was mentioned in one of the earlier posts dated 2006. The website has info specifically on spot forex trading as the previous post seems to list info about currency futures.
Taxlaws are always changing, and i am 99.99999% sure that something would have changed since 2006. I live in Australia and profit from forex trading is classed as income tax, but i think if your profits from your trading are not your main source of income, then 250k is tax free! The best thing to do is go to a good accountant.
[QUOTE=trustFX;131811]I live in Australia as well and I seriouly doubt that 250k (profit per year?) would be considered “a hobby” by the tax authorities.
Hey TrustFx,
I just had a quick search on the net to see if i could find where i read it, but no luck. So it was basicly something i remember reading, and your right the Gov n Tax authories are not going to just let you keep 250k tax free when they can have a slice of it. I’m going to go to my accountant and get an update on the tax laws for today, they always bloody change the rules, but when one loop hole closes, another one opens.
Yeah for sure, i’ll try get around to it some time this week. Tax, they couldnt make it easy to understand, you go to the ATO website and it’s like your reading another fluckin language.
Doubt it, it would probably be still classed as income on top of what you earn elsewhere. In Australia we get the first 6-7k tax free. It starts to get more complex though with capital gains,trading as a sole trader or under a company etc… Might be different in the U.S.
Surely the right answer is that there is no right answer…it all depends on what country you live in. Different countries have different laws relating to Capital Gains etc.
Keep up with how much of your seed money from your already taxed assets you put into forex, I know im on my own come tax time but that’s ok, i treat the account like a rolling balance if i ever do make enough to worry about taxes, as long as its in the account its invested, when I will pay taxes is when it comes out.
Hello, what if for example i had $10,000 in my account. I then made periodical withdrawals that summed up to $800 after the year ends. However, my account lost $2,000 or more from that year. So do I still need to pay taxes for that?
In Ontario, Canada, profits (over $200) from forex are considered capital gains. Capital gains are taxed at 50% of your profits, based on your tax bracket.
For example. If you make your living trading stocks or FX and you made $100k profit for the year, 50% of that profit ($50k) is taxable at your tax bracket level.
“Several years ago, the Canadian government cut the capital gains inclusion rate (the percentage of gains you need to “take into income”) from 75% to 50%.
For example, if an investor purchases stock for $1,000 and then sells that stock for $2,000, they will have a $1,000 capital gain. Investors pay Canadian capital gains tax on 50% of the capital gain amount. This means that if you earn $1,000 in capital gains, and you are in the highest tax bracket in, say, Ontario (53.53%), you will pay $267.65 in Canadian capital gains tax on the $1,000 in gains.”