ok, im a nub.
i want to know how to pay tax and the process of it. all the major details.
second, i heard that if i make a win trade and than make a equal lose trade that i still have to pay tax for the win trade, example, win trade 100 and then make a lose trade 100 do i still have to pay tax for the win trade?
I need to know how tax work for forex trading. Everything that is needed to know about forex trading tax. please ty
It depends on the tax laws of the country you reside in (and even then which country you spend most time).
Most basic tax systems will either tax you according to capital gains, or else as short term income. It all depends on how you class yourself-- are you a trader or an investor?
Traders operating as a business will usually take out operating costs and losses, and be taxed on end profit. So in your example, no, you would no be taxed on zero profit.
However, you need to consult the relevant tax authorities in your country, and get some accounting/legal advice depending on your situation.
Dont worry profit91- I’m here to help!
Tax paying really varies from country-to-country due to differences of law. Some Forex companies take care of the tax for you by deducting a percentage from your wins each time you withdraw, and there are other companies that let you deal with the tax authorities yourself.
Hope this was helpful! Good Luck in all your future trades 