Tax when hedging currency risk through IB IDEAL

Discussion in 'Forex' started by PXG, Oct 20, 2003.

  1. PXG


    Hi, I was wondering if anybody has any suggestions:
    We live in the US, but will be moving to Europe in a year or two. I was thinking hedging our USD account against Euro, and was considering exchanging part of our USD IB account into Euro.
    I couldn’t find any information on taxes in this situation. I searched here on ET, and only found info how to tax when you trade Forex. But IB IDEAL isn’t considered FOREX, or is it?
    If I will have to tax potential capital gains of my USD/Euro hedge through IB IDEAL wouldn’t I be better off just exchanging the USD to Euro in a bank, and then deposit the Euro into my IB account, since I assume this way I won’t have to pay capital gain tax, or am I wrong?
    Does anybody have any advice, or could you suggest where to find more info?
    Thanks in advance,