If you day trade, this is considered regular income (not capital gains). So my question is, is this done transaction by transaction, or is it done by net profit at the end of the year? I ask this because this is my fear: you make 3000 in profit but 6000 in losses, you still owe taxes on 3000. How is that fair?
Hey guys, I'm a new forex trader in Ontario Canada. Over here your gains are treated as income and are taxed as self-employment income. Are there any ways to reduce taxes other than writing off business expenses? Also, are you able to write off things like food expenses? Thanks a lot. EDIT: I thought this didn't have to be mentioned, but I'm looking for LEGAL ways to reduce taxes, lol.
i am looking for a guide to inform me on the ins and outs of filing taxes for forex, repercussions of using 1:1000 leverage, trading limits per day etc. basically i want to know all the rules of what you can and cannot do
I tried to find as much as info as I could through the well known search engine but its very difficult to get a concrete answer. Can you setup up an offshore company in tax haven e.g. BVI trade through it and pay yourself a salary that is a fraction of the money you make? Therefore essentially paying yourself a salary and only getting that amount taxed. Through research I did I get conflicted answers, some say yes others say that you will be held liable for ALL profits you made in BVI at US corporate tax rate which would result in far worse tax implications for you. I know best answer is to pay a lot of money to a tax attorney that specializes in offshores but giving it a shot to see maybe someone here either dug deeper or already done so? This is for day trading/scalper... So there is a lot of trades involved daily. Also take into account that this entity would trade with NON-US Broker of course. I’m wondering whether a legal route exists to do this or not... Of course they are multiple ways to do it in gray area. Simply put, is there a way to set up a trading company offshore legally and pay yourself a salary which will get taxed (at a higher rate of course vs trader) but leave the rest capital un-taxed?? Thanks!
Hi everyone, I’ve been trading for about a year now now and I’ve made around £12k from currency trading on a CFD platform icmarkets, I’ve tried to look into how tax works but honestly its all mixed up information. Forex isn’t my main income I work full time and earn around £32k a year, if I was to withdraw some of these profits would I have to declare them to pay capital gains tax or not bother declaring it? Thanks drop me me message is anything else Is needed
I'm filing my US income tax with income from Forex and was wondering if I can deduct the cost of hosting services and tech service that I needed to trade from the Forex profit, or should be enter as a deduction from the overall income. Forex profit = 3,600 ........what my broker statement reported Cost of tech services =2,600 ........indirect cost but have receipts Do I enter each desperately or just report profit as 1,000
Hi guys , started trading about a month ago and I started using a live account about 2 weeks ago. I’m from the UK, England as stated in the title . I am 16 years of age and I registered to the broker IC markets through using my brother in laws ID. He is with the bank Natwest and he opened up a separate bank account in his name for me to use with withdraw/deposit funds etc. but to get to the point , my question is will my brother In law(me) have to pay any tax on any of the money withdrawed from my brokerage balance. From reading online and asking peers I have been told that it is completely tax free but I would appreciate some official document if available to show my brother in law to clear up any uncertainty. Many thanks :) happy trading .
Forex tax questions for US residents that use offshore brokers
Hey everyone, I use an offshore broker but am a US resident so Im wondering how those in my situation file their taxes? Do you use a CPA or a tax program like turbotax? And if you do use a CPA, I was advised to find one that specializes in filing taxes for forex traders but am having a hard time finding one in my area(Orange County), any tips? Thanks in advance!
I've been trading on my forex demo for around 9 months regularly, im doing well enough and have confidence in my ability and I plan on going live November 1st. Just in time for the election to eff everything up regardless of who wins. Anyway is forex taxed as capital gains or something else? I make more than the 78k in my main job so I don't think I'll have 0% capital gains tax, so im thinking it'll be like 15% but honestly... I have no idea. Am I thinking about it correctly?
I thought it would be a good idea to have a tax discussion each year to discuss Forex tax filing methods/techniques to account for any changes to make our lives easier. Also to find out which brokers might play nicer than others when it comes to providing tax documentation. There is tons of conflicting advice out there on how to file so I thought this would be a good place to see how everyone else is doing it. So, based on your last tax filing:
Were you profitable or unprofitable? (note: I've read that losing years should file 'IRC 988'; winners 'IRC 1256' for tax advantages)
What year was it?
Which filing software and packages did you try and was your experience a good one? TurboTax, HR Block, etc?
I've been trading Forex (CFD) pairs such as USDJPY, GBPUSD, EURUSD etc, the past year or so. I was wondering if anyone would be able to help me out with my tax situation. I did incur some losses (~$2000) and was wondering if I can claim it as a deductable in my tax return. Or would it be marked up as a CGT loss and that's about it? Any help would be appreciated.
Can anyone help me by providing me resources on how i can learn when and how i would pay taxes if i was to start a Forex account as a full time job any advice would help as im struggling to find answers and the government site does an awful job of trying to explain taxes.
I am a day trader I trade the forex market I’ve been trading for 3 years. This year was my biggest by far. I’ve made more money this year than I ever have in the 3 years I’ve been learning to trade. My question if anyone knows the answer is do I have to create an LLC or Scorp for my trading for taxes?? I’ve never done it before because I wasn’t making much money and didn’t think I mattered but since I’m making more money now I wasn’t sure. I don’t want to get in trouble with the IRS & know not what to do. I still work at Starbucks as a shift supervisor and day trade most morning before work. Now I’m constantly starting to match my weekly paycheck & putting everything to the side to eventually buy my first house to rent out.
Looking for a good broker for options (for US based stocks) and forex trading. French tax resident
Hi guys, would be grateful for any insight about options and forex trading brokers present for French tax residents as such. Plan to start with an outlay of about 10k EUR and want to invest in US based stocks primarily. Would also be grateful if you might know of any platforms that provide demo accounts for options trading here as well.
Hello BEFire people, Looking how I now have a bit of time on my hands and some money I don't mind loosing on the short term, I would like to start dabbling into Forex trading. Lost of great resources exist for you to start with a demo account and learn how this type of market work but the question isn't here. As any investor know most of the money you make can be lost through the complex process of Belgian taxation. Which is why I am addressing you in the first place. After a bit of research, i found really conflicting legislation on the subject. On one side, the FSMA has banned the trading of CFD (contract for differences) and Forex instruments by Belgian brokers. (https://www.fsma.be/en/faq/fsma-regulation-governing-distribution-certain-derivative-financial-instruments-binary-options-0) Leaving little room for private investors to do anything. On the other, I didn't read anything about passing through an offshore broker. Diving deeper in the taxes aspect of it, I suspect this would be taxed as a "professional salary" due to the repetitive nature of the operation and would there account for for a complementary salary more than anything else. If it is the case, this would mean it would follow the following table: from 0 to 8 350 euros ..............................................25 % from 8 350 to 11 890 euros ....................................30 % from 11 890 to 19 810 euros ..................................40 % from 19 810 to 36 300 euros ..................................45 % over 36 300 euros ..........................................50 % Mind that these numbers date from 2015 and might not be up to date anymore. This would means that if you want to double your capital by trading Forex you would nearly have to triple it before taxes. Has anyone here ever dealt with Forex trading and could confirm my understanding on (1)the possibility to trade Forex through offshore broker and (2)the way Belgian taxes are computed for this type of trading is correct ?
I have been trading on the practice account on the trading 212 app. It has got me interested and I was wondering how taxing would work I haven’t found a real answer yet. I would only be trading on the forex as I have found it to have the best turn around.
I am a full-time foreign student (a tax resident) in Poland. I do not have a job, and the only source of my income is Forex trading, which is basically converting the currency (transferring from one of my accounts to another) within the same Polish bank. Presuming it is taxable income, how much of it need to be paid as tax and how would I go about paying it? I have read a bit about PIT-11 form which is usually provided by an employer, but in my case I'm likely considered to be "self-employed".
I know it’s difficult, so I decided to put together a mini-primer on how Forex trading taxes work as I understand it. As a budding Forex trader in the U.S., you have to be aware of two sections of the tax code: Section 988 and Section 1256. Both of these sections were initially made for forward contracts, but over time, they have also carried over to apply to spot Forex transactions. As ... Filing taxes on forex profits and losses can be a bit confusing for new traders. In the United States there are a few options for Forex Trader. First of all, the explosion of the retail forex market has caused the IRS to fall behind the curve in many ways, so the current rules that are in place concerning forex tax reporting could change any time. Regulations are continually being instituted ... The IRS taxes 60 percent of the gain as long-term, and 40 percent as short-term. In effect, the IRS blends these rates for any gains, taking into account the maximum tax rates for long- and short-term gains, and the result is a 23 percent rate on gains for all transactions no matter how long you hold them. Spot Trading. Spot currency traders buy and sell currency pairs, which rise and fall ... This section taxes Forex gains like ordinary income, which usually means a higher rate than the capital gain tax. Section 988 is also relevant for retail Forex traders. It states that investors who incur capital losses have the ability to deduce the losses from the income tax. A capital loss occurs in a situation where you sell an asset for a lower price than what you paid for it - as in a ... Forex Trading and Taxes. Seeing profits from forex trading is an exciting feeling both for you and your portfolio. But then, it hits you. What about taxes? The forex tax code can be confusing at first. This is because some forex transactions are categorized under Section 1256 contracts while others are treated under the Section 988 – the Treatment of Certain Currency Transactions. Section ... Tax-free countries around the world – the best for forex traders There are certain countries that are considered “tax-free countries.” This means that residents are not deducted for income tax, dividend tax, or capital gain taxes. Tax-free countries in the world (spread betting tax-free countries) are the Bahamas, United Arab Emirates, Brunei, Monaco, Turks and Caicos, The British Virgin ... Whether you are planning on making forex a career path or are simply interested in dabbling in it, taking the time to file correctly can save you hundreds if not thousands in taxes. It's a part of ...
Forex Trade With Us http://bit.ly/2EYIbgI Email: [email protected] Brokers I use https://bit.ly/35kgYkc P.S MY INSTAGRAM IS GONE NOW SO IF SOMEBODY W... Hey everyone! This is the 6th video in my December to Remember series and today I will be touching on how forex taxes are paid. I am NOT a tax professional, ... Tax Treatment of Forex Income - Duration: 12:44. Home Biz Tax Lady 6,255 views. 12:44. Taxes and Trading - tastytrade Talks Taxes For Traders - Duration: 17:35. tastytrade 26,190 views. 17:35 ... A place where you can get the latest news, tips and tricks related to forex. (Forex Taxes) How To File - So Darn Easy Forex™ - Duration: 19:28. So Darn Easy Forex University 9,736 views. 19:28. Tax Basics for Stock Market Investors! - Duration: 10:09. ... Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. **This video is not intended to be tax advice. Seek your own tax professional about your personal tax situation. ** Grab a copy of the Home Business Success ... Share your videos with friends, family, and the world