DailyFX Forum - View Single Post

		DailyFX Forum
Sidebar Wrapper

1,138 Users Online

Thread: Green Trader Tax

View Single Post

#2 (permalink)

03-09-2006, 12:15 PM

mwhitmoe

Registered User

Join Date: Mar 2006

Posts: 3

1256 Opt Out for Spot Transactions

Hi there! I guess I have a basic question/issue. I have been informed that it is clear that the 1256 opt out does not apply to spot currency transactions and that any income derived through a platform such as FXCM (using interbank spot transactions in currencies) must be declared as ordinary income. So is it true that while the policy behind this might be nutty, and that it might be revised in the future, that for right now traders, even those of us that do it for a living, have no choice but declare all net gains as ordinary income?

I am not asking for tax advice related to anything particular to my returns, but just in general what that rule is.

Cheers,
Mark

Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. Forex Capital Markets LLC. will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.