Paying Taxes when Forex Trading
It might have taken you months or years to make your first profits trading the foreign exchange markets or FOREX. Hopefully you have records of all your loses as you will need them to now offset the profits you have made trading. That is it, Uncle Sam and the IRS will tax your FOREX winnings as soon as you begin to profit. FOREX traders in the United States have two options to claim their profits from foreign exchange trading, either using IRC Section 1256 dealing with contracts or IRC Section 988 for foreign currency transactions.… Read more at 2008 Taxes.
