Tax question
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Thread: Tax question

  1. #1
    Join Date
    Dec 2006
    Posts
    5

    Default Tax question

    I am so new to Forex. Well, I was wondering, if anyone can tell me how it is gonna work Tax wise?

    Thanks a lot and Good Luck!

  2. #2
    Join Date
    Dec 2006
    Location
    Washington
    Posts
    213
    Umm...
    This is a loaded question and probably should be left up for the professionals to answer. I wouldn't really worry about it until you get serious about trading. If you are as new as you claim then you shouldn't even consider doing live trading for at least half a year I would have to say. Then you have to assume you would be profitable.

    The most I know about the taxes in the United States is that there are like two different options and that you have to decide before you trade but what you decide on isn't really enforced so you can decide later on which option to use. Obviously whichever option works best to your advantage. Personally I am not worried about such matter so thus I have such a half ass answer. You won't have to worry about such things for a long time. You have more important thing to worry about, like being a profitable consistent trader.

    Best of luck with your adventures as a trader.

  3. #3
    Join Date
    Nov 2006
    Posts
    12
    Look under your broker's website FAQ section, and they will usually discuss the procedure.

    Here's an example: http://www.efxgroup.com/about-forex-tax-tips.html

  4. #4
    Join Date
    Dec 2006
    Location
    Norristown, PA
    Posts
    450
    This should answer your question. It sounds very complicated to me and like swordofrue said Taxes are the last thing on my mind until I start making a lot of real money someday, in which I will have no problem paying the IRS their share.

    http://www.greencompany.com/Educatio...tml#futuresmag


    Quote Originally Posted by silvi View Post
    I am so new to Forex. Well, I was wondering, if anyone can tell me how it is gonna work Tax wise?

    Thanks a lot and Good Luck!

  5. #5
    Join Date
    Jan 2007
    Posts
    29

    Default I am glad someone asked about taxes

    I am sure with all the trading..The Tax Department is going to want to get in on the deal.. So, I am glad the question was asked, before I could ask it!

  6. #6
    I'm glad it was asked as well, I think taxes for most people aren't really thought of until it's a pressing issue. I prefer to take note of what to do ahead of time however.

    When I first started doing freelance and claimed self-employed on my taxes I was in for a big shock how high they can be, and had to do some wrangling to be able to come up with it all last min.

  7. #7
    Join Date
    Jan 2007
    Posts
    29

    Default Freelance

    You mean you are doing freelance jobs so you must file 1099?

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