Hello

I understand that an LLC don't get taxed on the corporate level, and only the shareholders are taxed for their dividends......so what if one of the shareholders is foreign (non US resident/worker), do they still tax him for his divedends although he's expemted as a foreigner?

Dear Green Trader Tax,
I am a foreign national working in healthcare field in US on H1b visa. I have been here for past 5 yrs. I also trade forex as hobby. I have substantial profit this year. I file returns based on W2 provided by my employer every yr. Now my question is: Do I have to file IT return on my forex earnings even if I'm not a US citizen or Green card holder?
I appreciate your kind reply,

Best wishes,

non residents are often snagged with US tax in US LLC partnership returns. Tax withholding is often required on the partnership level.

If a non-resident alien has a retail trading account in their own name they usually do not owe US tax; except for withholding on dividends and master limited partnerships.

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A non resident living in the US is a US resident under the physical presence test; even though they are not a legal resident (citizen or greencard holder). All US residents file alike.

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Thanks for the clarification----

Hi I am new to Forex trading. Do forex traders pay their taxes quarterly or end of year?

Hi. A group of friends and I got together and formed a partnership and pooled our money together to trade in the forex. The forex account is in MY name - but we did create a legal partnership (obtained and EIN # and such). How would I file taxes on this?? Do I create a 1099-DIV for the partnership or a 1099-INT??

Then - as the person doing the "books" on the partnership - I believe I file a 1256 - is this correct? Then give everyone Schedule K-1's?? I'm not sure how to do all this? Do I have to document somewhere each and every "closed trade" - or just "market value of open-trades"?

Any help in this matter would be appreciated - this is a LOT more confusing than I thought it was going to be!

Thanks.

Hello, i saw your company involved on few online blogs discussing forex tax treatments so i have decided to ask a question related to forex loss that i have.
i have -641$ in 2007, -39$ in 2006 and -6780$ in 2005, can i claim the total on line 21 of my 1040 and offset regular W2 income?
Also i have lost like 3500$ in refco bankruptcy, and i got settled in 2007 can i also claim that as a loss on my 1040?
thanks it would be of great help if i get any info to direct me.
Thank you!
Kevin

One of my brokers went out of business and is being investigated from what I understand. Their site went down a few months ago, and I can't log in and get my reports. How should I handle this with my taxes? I have an approximate idea of what I made.

Thanks,

Paco

Hi,
For some reason I cannot start a new thread that is why I am putting my questions here.

I think I have a pretty basic situation, read the forum but I am still not clear what exactly to do.
Last year I opened just one position (to tie some of my assets to the euro) and this position is still open. Also, I created a managed account and after the initial transfer I haven't withdrawn (or added) any money from it.

I have interest expense that according to the information in the forum should go on Schedule A (using IRC 988). Looks like Schedule A is for itemizing deductions. I am happy with the standard deduction. Do I still need to report the interest expense? Sounds like I shouldn’t need as I do not need to do so for the other items in this schedule if I select to use the standard deduction, but I am not sure. What if I have both interest expense and income? Should I just summarize and report it on the respective form?

The more important question that I have is how that position which is still open (and was open at the end of the year) should be reported? Should I report gain/loss according to the value at last day of the year or this is considered unrealized gain/loss and as such I do not have to report it?
Same question goes for my managed account – since I do not have withdrawals should it be considered unrealized gain/loss or it should be reported according to the condition it was at the end of the year?

The number of contracts is not the meaningful to make the determination for trader tax status.

You need to know the number of round trip trades; which should be 1 or more per day every day. 4 hours per day. Serious account size, intention to run a business and more.

It's all explained well with good examples in "Green's 2008 Trader Tax Guide" and my hardcover book "The Tax Guide for Traders."

http://www.greencompany.com/Traders/Guides.shtml

You can still claim trader tax status for 2007.

Thanks

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Hi there,

Last year, my husband and I decided to get into forex and ultimately lost $60K. Our CPA recently told us that we can only write off $3000. This seems to be the hot issue right now. If we don't have any other capital gains and we are not professional traders, is it true that we can only write off $3000?

I have read most of your posts, yet I remained puzzled by my situation,

1. In Jan 2007, I bought 100,000HKD @ USD/HKD 7.7000 in my margin account at IB.

2. Using this 100,000HKD, I bought/sold some HongKong stocks and ended up with a total loss of 10,000HKD during Jan ~ Oct 2007.

3. In Dec 2007, I exchanged the leftover of 90,000HKD back to USD @ USD/HKD 7.8000.


I received the Form 1099B from my broker (IB) regarding the 10,000HKD loss, but I didn't get any report regarding the HKD trade loss. I have so far finished

the schedule D about the 10,000HKD stocks loss by using the TurboTax. But I'm totally lost on how I should report the forex loss.


Here are my questions,

1. Did my HKD exchange belong to spot forex?

2. Can I claim the HKD exchange loss under the IRC 988?

3. If I can, then Which amount should I put at line 21, Form 1040?

Should it be 90,000(HKD)/7.8 - 90,000(HKD)/7.7 = -149.85(USD) ?

Or 100,000(HKD)/7.8 - 100,000(HKD)/7.7 = -166.50(USD) ?

Thanks in avance for your help!

Zoom

If you have a small forex loss and put it on line 21 of 1040 do you have to add an explanation anywhere, attach a separate sheet explaining the loss or fill in any forms to go along with it, saying it is a foreign currency transaction loss.

To qualify for trader tax status, you need one or more trades per day every day plus lots of other factors. See my guides on this.

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