Doing Taxes...

Discussion in 'Forex' started by AJFCapital, Apr 26, 2009.

  1. 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 I’m 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!
  2. 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.
  3. 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.
  4. Enjoy your audit LOL

  5. 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.
  6. Is there a wash sale rule in forex?
  7. Surdo


    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!
  8. No, there's nothing wrong with my numbers. They'll find that out after 1000 hours of review.
  9. Surdo


    How do you file SPOT Fx, Sec.1256 or 988 contracts?
  10. Word on the street is that 1256 smells most like spot FX.
    #10     Apr 27, 2009