Taxes and forex trading

Beginner Questions
1

I’ve been told that currency trading losses are netted against currency trading gains and taxes are paid on the gains in excess of losses.

How are spreads taxed for trading gains and how are spreads taxed for losses. Are they expensed as a cost of doing forex trading??? Does the brokerage break out pips or costs for spreads in their annual trader report they submits to the IRS???

What other considerations must a newbie consider when preparing his taxes.

How would you suggest someone locate a tax person familiar with preparing taxes for a forex trader.

This is my first year and I’m trying to prepare for the tax season.

I’d appreciate any comments/advice you may have about taxes and forex trading.

Thanks for reading my post.

2

I’ve yet to pay taxes on forex gains, but my understanding is that they are like futures in that you will be sent a 1099 form that has your NET gains (or losses) and you will be taxed on the net gains.

There is no Schedule-D like with equities (where every trade is cataloged)

Actually do a search in the section for taxes, there is a couple threads (one last week in fact) that I posted up some videos concerning the topic.

That should send you in the right direction.

Cheers!