I currently trade stock with Scottrade and when tax season approaches, I can just download the forms/statements and do my taxes on TurboTax. Now Iâm currently paper trading with FxPro, which is in Cyprus. When I decide to go live, do FX brokers also provide you with the appropriate tax forms? Is it strictly the individuals responsibility to report transactions and income/loss? Thanks for any helpful replies!
Many brokers provide nothing for Fx trades. They don't even report it on a 1099 form. You need to track it yourselves and report on your return. Individual transactions do not need to be reported. Just the totals like futures.
I send the IRS a gigantic pile of paper with every transaction on it. I know they probably don't do anything with it, but it warms my heart to think there might be some auditor in a basement going blind reading it.
Which brokers do you all use, and are they in the U.S.? I was just chatting with GFT, and they provide their clients with all the appropriate tax forms.
No wash rules! I file Fx the same as sec. 1256 contracts, (futures) although there is a debate if this is correct... VS filing as sec. 988 contracts? I never seem to make anything in SPOT, so I am not too worried! http://www.greencompany.com/EducationCenter/GTTRecCurrency.shtml