Hey there everyone, I’m a bit new to forex, and have been profitable thus far, taking a 1k account to 6.4k this year. Will be my first year filling forex tax claims, and I have a question I can’t find an answer to anywhere when it comes to the treatment of U.S. taxes on forex capital gains.
I’m wondering, do we pay tax on each trade that is a capital gain, or simply the end capital gain balance at the end of the year? This has me a little stressed out, because losses are a natural part of forex, and I’m wondering, say, if I make a trade and win(capital gain), and then make another and lose it all, do I still owe tax for the first capital gain? Or is it off set by the loss?
I hope I’m making sense, and would appreciate anyone responding who has the patience to explain this to a new guy. Thanks ya’ll!
I’d recommend you pay for professional advice from an actual tax accountant in your area, instead of relying on he said/she said on a trading forum. Tax laws differ from area to area and not to mention a country.
Better yet - hire one to do your tax forms for you. They often know how to save you some cash and even get some returns that you’d otherwise have missed.
Good luck!
As John pointed out, the tax treatment of your forex trading activities depends on your individual circumstances and may be subject to change in the future, or may differ in other jurisdictions. It is suggested that you contact a certified accountant for further information on your tax planning.
