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Forex ? Q&A: How do I pay income tax on ForEx earnings? | Finance ...

September 25, 2011

Forex Question by aa: How do I pay income tax on ForEx earnings?
This is my first time for paying income tax on ForEx, being a US citizen i believe i have to pay tax on forex income, but i have no clue what do i have to do for that. Thanks for your help.

Best answer:

Answer by tyler
Normally you need to file them as capital gains or losses (like you would with stocks or options).

But you can make a special election that will allow you to split them as 60% long terms capital gains and 40% regular income, which is advantageous for tax purposes since long term capital gains rates are lower.

http://www.onlineforextrading.com/learn-trading/forex-taxes

Know better? Leave your own answer in the comments!

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Source: http://yareo.net/forex-qa-how-do-i-pay-income-tax-on-forex-earnings.html

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