Need to pay tax for options income?

Discussion in 'Options' started by Jaques, Feb 3, 2008.

  1. Jaques


    Newbie here.I am foreigner.So I know whatever the tax law,I need to pay the withholding tax.

    But for an American,is there still a need to pay tax on options,fx and futures income?

    If the answer is yes,capital gain tax or income tax?

    Really want to know.Thx for reply.
  2. segv


    If you are an American you pay income tax on every form of income worldwide. This includes income from options, futures, forex, guns, drugs, smuggling, gambling, and acts of god. For an American, if you have to ask, the answer is "yes". The type of tax paid depends on your tax status with the form of income in question. For example, you might normally pay 60/40 long/short capital gains tax for section 1256 contracts, or ordinary income if you have made the mark-to-market election. Talk to an accountant.
  3. Did you know that in America you are legally required to pay tax even on things you stole? I'm dead serious. lol Just a funny thought.
  4. Bowgett


    Yup if you default on the loan (aka stole money from the bank) you pay taxes on this "income" :)
  5. Jaques


    Really Terrible~~
  6. While we're being pedantic, that's not actually stealing.