Tax Forex Trading
How Forex Trades Are Taxed Investopedia Whether you are day trading cfds, bitcoin, stocks, futures, or forex, there is a distinct lack of clarity, as to how taxes on losses and profits should be applied. however, with day trading promising an enticing lifestyle and significant profit potential, you shouldn’t let the uk’s obscure tax rules deter you. Forex transactions need to be separated into section 988 reporting. given the fact that the forex market is one of the fastest-growing financial markets around, it might eventually come under closer irs regulation. in the meantime, traders continue to enjoy tax advantages by trading foreign currencies. When your forex trading acitivity ends up with net loss, you’re better off with section 988. it enables you to deduct your net capital loss from other types of income. on the other hand, if your trading activity results with a net profit, section 1256 is preferred because it allows you to have a lower overall capital gains tax rate. Mar 16, ...