Registered: Jun 2008
04-23-12 12:17 AM
Quote from Froglet:
I am wanting to start FX trading and have started to read on babypips.com. Still, I think part of the learning process is to be involved w/ a 'demo' platform.
But before signing up, I wanted to know more about the 'tax' changes and 'tax' concerns for trading FX. With the stock market, a couple of brokers have TXF files which make it easy for turbo tax.
However, I don't know if there is something comparable for FX. I have read about potential changes in reporting for FX, so I wanted to be prepared for it.
Any insight to this?
There are complicated choices available in how you report FX, including optional elections, bookkeeping options, and doubtful issues, so that a broker probably could not come up with one way to report it. Also the IRS does not have standardized reporting formats as they do for stocks.
If you read the GreenTraderTax web site, there are discussions of the various possible approaches. Some of the law is unsettled as to what is permissible and what is not and some of it depends on how your trading is characterized. It is not black and white at all.