How do I pay income tax on ForEx earnings?

Question by aa: How do I pay income tax on ForEx earnings?
This is my first time for paying income tax on ForEx, being a US citizen i believe i have to pay tax on forexfactory calendar income, but i have no clue what do i have to do for that. Thanks for your help.

Best answer:

Answer by tyler
Normally you need to file them as capital gains or losses (like you would with stocks or options).

But you can make a special election that will allow you to split them as 60% long terms capital gains and 40% regular income, which is advantageous for tax purposes since long term capital gains rates are lower.

http://www.onlineforextrading.com/learn-trading/forex-taxes

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Friday, January 27th, 2012 Forex Trading

2 Comments to How do I pay income tax on ForEx earnings?

  1. http://www.e-bookreaders.biz/business/top-3-forex-robot-revie/

    2. Jimmy E on January 27th, 2012

  2. You should have received a 1099 from your broker. It’ll show your capital gains or losses. When in doubt, ask an accountant or other tax professionals.

    3. Trade on January 27th, 2012

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