Hey guys, I'm a new forex trader in Ontario Canada. Over here your gains are treated as income and are taxed as self-employment income. Are there any ways to reduce taxes other than writing off business expenses? Also, are you able to write off things like food expenses? Thanks a lot. EDIT: I thought this didn't have to be mentioned, but I'm looking for LEGAL ways to reduce taxes, lol.
i am looking for a guide to inform me on the ins and outs of filing taxes for forex, repercussions of using 1:1000 leverage, trading limits per day etc. basically i want to know all the rules of what you can and cannot do
Hi everyone, I’ve been trading for about a year now now and I’ve made around £12k from currency trading on a CFD platform icmarkets, I’ve tried to look into how tax works but honestly its all mixed up information. Forex isn’t my main income I work full time and earn around £32k a year, if I was to withdraw some of these profits would I have to declare them to pay capital gains tax or not bother declaring it? Thanks drop me me message is anything else Is needed
I tried to find as much as info as I could through the well known search engine but its very difficult to get a concrete answer. Can you setup up an offshore company in tax haven e.g. BVI trade through it and pay yourself a salary that is a fraction of the money you make? Therefore essentially paying yourself a salary and only getting that amount taxed. Through research I did I get conflicted answers, some say yes others say that you will be held liable for ALL profits you made in BVI at US corporate tax rate which would result in far worse tax implications for you. I know best answer is to pay a lot of money to a tax attorney that specializes in offshores but giving it a shot to see maybe someone here either dug deeper or already done so? This is for day trading/scalper... So there is a lot of trades involved daily. Also take into account that this entity would trade with NON-US Broker of course. I’m wondering whether a legal route exists to do this or not... Of course they are multiple ways to do it in gray area. Simply put, is there a way to set up a trading company offshore legally and pay yourself a salary which will get taxed (at a higher rate of course vs trader) but leave the rest capital un-taxed?? Thanks!
I'm filing my US income tax with income from Forex and was wondering if I can deduct the cost of hosting services and tech service that I needed to trade from the Forex profit, or should be enter as a deduction from the overall income. Forex profit = 3,600 ........what my broker statement reported Cost of tech services =2,600 ........indirect cost but have receipts Do I enter each desperately or just report profit as 1,000
Hi guys , started trading about a month ago and I started using a live account about 2 weeks ago. I’m from the UK, England as stated in the title . I am 16 years of age and I registered to the broker IC markets through using my brother in laws ID. He is with the bank Natwest and he opened up a separate bank account in his name for me to use with withdraw/deposit funds etc. but to get to the point , my question is will my brother In law(me) have to pay any tax on any of the money withdrawed from my brokerage balance. From reading online and asking peers I have been told that it is completely tax free but I would appreciate some official document if available to show my brother in law to clear up any uncertainty. Many thanks :) happy trading .
Forex tax questions for US residents that use offshore brokers
Hey everyone, I use an offshore broker but am a US resident so Im wondering how those in my situation file their taxes? Do you use a CPA or a tax program like turbotax? And if you do use a CPA, I was advised to find one that specializes in filing taxes for forex traders but am having a hard time finding one in my area(Orange County), any tips? Thanks in advance!
I thought it would be a good idea to have a tax discussion each year to discuss Forex tax filing methods/techniques to account for any changes to make our lives easier. Also to find out which brokers might play nicer than others when it comes to providing tax documentation. There is tons of conflicting advice out there on how to file so I thought this would be a good place to see how everyone else is doing it. So, based on your last tax filing:
Were you profitable or unprofitable? (note: I've read that losing years should file 'IRC 988'; winners 'IRC 1256' for tax advantages)
What year was it?
Which filing software and packages did you try and was your experience a good one? TurboTax, HR Block, etc?
Hello BEFire people, Looking how I now have a bit of time on my hands and some money I don't mind loosing on the short term, I would like to start dabbling into Forex trading. Lost of great resources exist for you to start with a demo account and learn how this type of market work but the question isn't here. As any investor know most of the money you make can be lost through the complex process of Belgian taxation. Which is why I am addressing you in the first place. After a bit of research, i found really conflicting legislation on the subject. On one side, the FSMA has banned the trading of CFD (contract for differences) and Forex instruments by Belgian brokers. (https://www.fsma.be/en/faq/fsma-regulation-governing-distribution-certain-derivative-financial-instruments-binary-options-0) Leaving little room for private investors to do anything. On the other, I didn't read anything about passing through an offshore broker. Diving deeper in the taxes aspect of it, I suspect this would be taxed as a "professional salary" due to the repetitive nature of the operation and would there account for for a complementary salary more than anything else. If it is the case, this would mean it would follow the following table: from 0 to 8 350 euros ..............................................25 % from 8 350 to 11 890 euros ....................................30 % from 11 890 to 19 810 euros ..................................40 % from 19 810 to 36 300 euros ..................................45 % over 36 300 euros ..........................................50 % Mind that these numbers date from 2015 and might not be up to date anymore. This would means that if you want to double your capital by trading Forex you would nearly have to triple it before taxes. Has anyone here ever dealt with Forex trading and could confirm my understanding on (1)the possibility to trade Forex through offshore broker and (2)the way Belgian taxes are computed for this type of trading is correct ?
I have been trading on the practice account on the trading 212 app. It has got me interested and I was wondering how taxing would work I haven’t found a real answer yet. I would only be trading on the forex as I have found it to have the best turn around.
How do we get taxed in US Market, Crypto, Forex (using eToro etc.) gains?
Hello! im a medical student who recently started investing in stocks. I currently have about 500k+ to invest but only invested 50k so far in eToro and a few thousand pesos in FMSec just to try things out. I just got my own TIN number for the purpose of stock market investing, as it is a requirement, so I have little knowlege as to how taxation works. As im starting to earn, im wondering about the tax arrangements. I havent found clear information about this after searching. Can someone please help me out. Do I have to pay taxes everytime I close a trade or just when I transfer my gains back to my bank account? Do I have to submit forms and other requirements to BIR? Sorry im new to this. Any help would be much appreciated :)
I am a full-time foreign student (a tax resident) in Poland. I do not have a job, and the only source of my income is Forex trading, which is basically converting the currency (transferring from one of my accounts to another) within the same Polish bank. Presuming it is taxable income, how much of it need to be paid as tax and how would I go about paying it? I have read a bit about PIT-11 form which is usually provided by an employer, but in my case I'm likely considered to be "self-employed".
If I'm unemployed and I profit more than £12,500 a year (tax-free allowance) trading Forex, will I have to pay income tax on all profits above £12,500?
Also, when do I declare it as income? Does it count as income when my Forex account balance increases, or when I actually withdraw the funds into my bank account? So lets say that I gain £20,000 this year trading Forex, but this stays in my Forex account (I don't withdraw any money into my bank account). Will I have to declare it as income and pay taxes on it? Or is that only if I withdraw the profits into my bank account? (by the way, I am spread betting, therefore there is no stamp duty or capital gains tax).
When trading CFDs (Forex) as your main source of income, do you just pay income tax or do you have to also pay CGT?
When trading Forex CFDs as your second source of income, you will have to pay CGT. When trading CFDs as your main source of income, you will have to pay income tax. My question is: do you also have to pay CGT along with the income tax, or is it just income tax by itself?
How much do you have to make to file for taxes on Forex income?
do you have to just make less than what your state requires for taxing? So let's say I made 2k trading but my state says I don't have to file taxes unless I make 3k or more, then do I not have to file?
A crucial consideration in forex taxation is the difference between long-term and short-term capital gains, as defined by the IRS. In general, long-term gains are those realized on investments held longer than a year; you take short-term gains (or losses) on investments that you hold for less than a year. Forex is traded tax-free in certain circumstances and specific countries, although generally, that is not the case. For example, Forex transactions are often classified as a form of betting and therefore not considered to constitute taxable income in the UK. Beware of making any assumptions; tax laws can be ‘woolly’ to say the least. Get the best of both worlds with forex taxes: Ordinary losses in Section 988 or elect capital gains for a chance to use lower 60/40 rates in Section 1256(g) “Forex” refers to the foreign exchange market (also known as the “Interbank” market) where participants trade currencies, including spot, forwards, or over-the-counter (OTC) option ... If you elect to report FOREX income under IRC S.1256, 60 percent of the income is treated as a long-term capital gain and taxed at a lower rate than ordinary income. The remaining 40 percent is considered ordinary income. If you make a profit trading FOREX in the coming year, IRC S.1256 tax reporting will result in a lower tax rate. Forex: Taxed as Futures or Cash? Currency traders involved in the forex spot (cash) market with a US brokerage firm, can choose to be taxed under the same tax rules as regular commodities [IRC (Internal Revenue Code) Section 1256 contracts] or under the special rules of IRC Section 988 (Treatment of Certain Foreign Currency Transactions).
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