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💸 Forex Income Tax Strategies

by: JohnnyRy
U.S. Income Tax Strategies for Forex and Futures Profits & Losses Upon becoming profitable, traders should begin to think about the most advantageous income tax strategy to use. The written and signed statement in the above image is a redacted copy of my actual U.S. IRS Code Section 1256 Electi...

Re: 💸 Forex Income Tax Strategies

by: JohnnyRy
1256 in the long run saves you more money and i think you cant change which one you choose once you pick Your first point is absolutely correct for profitable traders, but anyone can change their election by drafting and executing an internal Section 988 election in a subsequent year by using the s...

Re: 💸 Forex Income Tax Strategies

by: JohnnyRy
Canada... "If a trader is trading forex for personal purposes, such as to supplement their income or as a hobby, any profits earned from forex trading will be considered capital gains. Capital gains are taxed at 50% of the individual’s marginal tax rate. This means that if an individual’s marg...

Re: 💸 Forex Income Tax Strategies

by: JohnnyRy
Might be of interest to some is the UK model that has CFDs and 'Spread Betting' which are essentially the same thing but with different tax laws. The broker IG started a gold spread betting service immediately after the Bretton Woods agreement in 1974 allowed public trading in gold (other assets ca...