Forex trading tax rates on income


TweeterTax is one of the most confusing aspects of FOREX trading. Currently, US individuals and investment funds trading with US brokerage firms are subject to a maximum tax rate of 23% on currency trading gains. This rate however, is contingent on timely declarations and proper identification, in the absence of which a federal income tax rate of 35% applies.Ordinary income and short-term capital gains (from assets held less than one year) are subject to a maximum federal tax rate of 35% and forex trading tax rates on income 15% for long-term capital gains.

Currency traders should be aware of two particular provisions in the Internal Revenue Code (IRC). For beginner forex traders, the goal is simply to make successful trades. Here is a break down of what you should know.For Options and Futures InvestorsFor anyone By TradersAccounting.com Research on September 24, 2009 in ArticlesTradersAccounting.comForex: Know What You Trade to Avoid Tax Traps:Forex, the foreign currency exchange market, can be a lucrative one indeed for traders skilled in its dynamics.

This should not be a surprise since the U.S. has repeatedly changed their tax laws applicable to foreign currency or Forex trading. At the present time, U.S. individuals and investment funds are subject to a maximum federal income tax rate of 23% on their foreign currency trading gains, provided they make timely elections and go through an identification procedure. In the absence of a timely election and proper identification, foreign currency trading gains are subject to a maximum federal income tax rate of 35%.

Unfortunately, the making of these elections is not well known in either the Forex trading community or among tax advisors. Forex Many preparers mess up forex tax treatment, and IRS and state agents are confused over the reporting, t.




Tax trading income on rates forex

Forex trading tax rates on income