How do you declare your forex profits/losses on your tax returns?
Friday, June 26th, 2009 at
3:40 pm
Jason B asked:
I imagine it is different than stock gains/loses on a Schedule D.
I imagine it is different than stock gains/loses on a Schedule D.
Tagged with: Imagine • Losses • Profits
Filed under: Forex
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What forms are they sending you?
1256 contracts go first to form 6781, then schedule D.
Other contracts go to line 21 with an attached explanation.
Jason B
You report your profits/losses on IRS form 6781 and transferred to Schedule D
60% are considered long term
40% are considered short term
Foreign exchange (forex) measures bring to account foreign currency gains and losses as assessable income or allowable deductions, on a realisation basis, to the extent such gains or losses are attributable to a fluctuation in a currency exchange rate, or to an agreed exchange rate differing from an actual exchange rate. The measures apply to all taxpayers, except for, broadly, banks and similar financial institutions.