Forex Income Taxes
Thursday, March 11th, 2010Can you claim losses on Forex currency trading for 2009 tax return?if you are an individual, no other income?
How much could you claim? if you can't claim the whole losses could it be carryon to next future years until Zero. Thanks
If these are 1256 contracts (currency futures and options traded on US exchanges), then you will get a 1099 showing the information to put on form 6781. In any given year, you can claim up to $3000 of loss against other income and carry it forward.
Forex spot and forward contracts are treated as ordinary income and you report them on line 21 as other income. If you trade enough to be a trader (which isn't easy to do), you could have an NOL.
Personally, I'd want the 1256 treatment.
