What is the tax rate for a FX market?
Sunday, May 2nd, 2010 at
7:42 am
What tax rate should be concidered for a forex market?
One year ago I invested a couple thousands of dollars in FX market. I lost more then gained. To make a long story short, I have gained approximately 00.00 (what I lost is more then this value). My concern and question is what would the tax rate for this money gain be for this sort of position. My (regular) pay and income is less than ,0000
Tagged with: 0000 • capital gain • tax rate • thousands of dollars • Trade market
Filed under: Trade market
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Did you keep records that state you expected to be taxed under IRC 1256 (capital gains rules) rather than IRC 988 (ordinary interest income)?
If yes, then when you receive your 1099 at the end of the year you will get a 60/40 split of activity onto your schedule D. 40% is treated as short term; 60% as long term. Long term gains would get a better tax rate than short term gains. (If for some reason you don’t get the 1099, you must still report the income.)