I’ve been doing research on how to report forex losses and gains. This will be my first time reporting taxes this year. I have seen where you are supposed to internally either elect out of IRC 988 and be classified under 1256 rules and do this on your own books, is there a form that you do this on and put away or is it as simple as writing down on a piece of paper that you have elected out of irc 988 and will be filling under 1256 rules? Thanks for any clarification.
Hi there!
I posted a link for you yesterday, but I think it got deleted because it was from a Web site that actually offers accounting services.
Anyway, you might want to check this out with your accountant or do a Google search for [B]forex taxes[/B]. On one of the top links, you’ll be able to find a wealth of information on trading and taxes. It includes info on the IRC 1256 and IRC 988.
Best of luck!
Spot FX should put you into IRC 988…
There is an hour long webcast on the differences and implications here: MoneyShow.com - Webcast - Forex Taxation: IRC 988 vs. 1256 60/40 Treatment, Trader Tax Status, Forex Funds, and More
You’ll have to register but its all free, and the guy doing the webcast is actually the owner of green trader tax (the website originally posted).
I’m actually watching it right now and its kind of eye opening.
Wow, Daedalus! Thanks so much for this!! This is [B]such[/B] a useful Webcast. I really hope they don’t delete this link because it really is very insightful.
Many thanks again - this will save me a fortune!
Best regards,
Jessa