Is it true that FOREX profits are not taxable until withdrawn from your account?

Hello,

Is it true that FOREX profits are not taxable until withdrawn from your account?

Thanks,

Herringtrader

 

If you're a US citizen, no, it's not true.

If you've made money by the end of the year, it's taxable no matter if it's in your account, your matress or under a rock.

 

Curious: how is forex trades reported?

Never traded it myself.

Thanks in advance.

 

I print out the huge list of trades I make each year, with a summary of my P+L. I pay the taxes on the interest, then on the cap gains and I give them all to my accountant who then mails the IRS the massive backup and essentially tells them - if you don't believe me, do the math yourself.

 

If you have open positions you dont have to pay cap gains until you close right?