Ask your question to the community. But just to be sure, I went right to the source and called up the IRS. Report them as short-term gains. Green goes on to discuss ways that forex futures traders can file their gains under Section of the IRS code to avoid paying at ordinary tax rates. Step 3 Transfer the totals on FormPart 1, Line 2, over to Schedule D, Part I, line 1, 2, or 3. Recommended Articles How to Use Hedging in FOREX Trading How to Read Price Action in FOREX Charts How to Fill Out Line 3 on Tax Schedule D Form How to Develop Forex Trading Skills Related Articles How to Profit From Very Small Moves in Forex Trading Tax Treatment for Capital Gains and Capital Losses Forex schedule j irs Losses Have to Be Reported in the Same Tax Year?




As I fired up TurboTax and prepared to do my taxes this year, I found myself mystified about how to report forex gains and losses from the spot currency markets where I do my trading. So I went poking around online for forex schedule j irs advice on how to handle my forex taxation conundrum or FTC, for short.

In short order, Google delivered me to an excellent article by Robert Green, CPA. Green notes that these rules could arguably be applied to the spot forex markets as well…which is where things get complicated. Some further reading in an essay by Jim Forrester of Traders Accounting only succeeded in confirming that the simplest, least controversial way for a spot or cash forex trader to file their trades is as ordinary, short-term gains or losses.

So I decided to keep it simple and safe and go with ordinary tax rates all the way. But just to be sure, I went right to the source and called up the IRS. Report them as short-term gains. Pay taxes at the short-term gain rate. Describe them as gains from currency investments. Anyway, I hope this rambling taxation narrative was helpful — or at least that those links I provided to real tax advice are. And now, please read the friendly disclaimer below.

And then re-read it. Be sure to consult an accountant or tax professional specializing in forex trading with any tax questions before reporting your trading gains or losses to the IRS. Learn About Forex Designing a Forex Trading Strategy. Make a Realistic Trading Schedule. Signs You May Be Overtrading. Weighting your trading signals. Forex Tax Tips: Reporting Trading Gains and Losses to the IRS. Green goes on to discuss ways that forex futures traders can file their gains under Section of the IRS code to avoid paying at ordinary tax rates.

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I.R.S. Form 5471, Schedule J


Illinois Department of Revenue Schedule J Foreign Dividends Attach to your Form IL Write your name as shown on your Form IL Write your Federal employer. SCHEDULE J (Form ) Department of the Treasury Internal Revenue Service (99) Income Averaging for Farmers and Fishermen Attach to Form or Form NR. Schedule J is the Internal Revenue Service form used when you want to average your fishing or farming income. Income averaging for farmers and fishermen provides a.