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?
I just started trading forex a few months ago and went from $10k to $14k on Oanda. When do I have to pay taxes? Is it only when I withdraw the funds from Oanda or is it on realized P/L? Also, is this taxed as capitals gains?
Hey guys, I live in the UK and ive just joined my friends company on the forex market. He uses a bot to predict the market and it work extremely well. I’ve only invested £500 and been doing it for 2 days and already made 5% profit on my investment. I’m just curious as to what I would have to pay in tax. I have a full time job and pay tax on that already at 20% but I was told by my friend that they don’t take that into account and I won’t have to pay tax until I earn over £10,000. This seems too good to be true to me, they said it came under capital gains tax and that what they were doing was not spread betting as they are using a bot. Can anyone shed any light on this for me? I’m not very savvy with this as I stated I’ve only been doing this for 2 days and I literally do nothing, all I’ve done is put £500 in and it’s making me profit. Thanks in advance
How do you report capital gains tax on forex trading?
For tax season, (for nonprofessional traders) when you report capital gains tax on your forex trading (and CFDs etc), do you enter each and every trade separately? Or do you calculate a total figure and just report that? After making many trades every day, it seem ridiculous to declare each and every trade separately for capital gain tax. Hows it done?
Me and my friend have been playing around shorting the AUD the last couple of weeks, done quite successfully as you may have guessed. My concern is reading somewhere that FOREX returns need be taxed 50% under the capital gains tax? Am I just batshit crazy or am I about to give 50% of my earnings to the government. Google forums are quite vague.
i started trading in october of last year. when i joined a lot of people i knew recommended Hugo’s Way, which is an unregulated broker. although i haven’t and the guys who told me have never had a bad experience with them, it just really concerns me in the back of my mind that it’s a risk. (i really do like their site though, it’s simple to use and easy to withdraw) so with that being said, i have a couple of questions .. 1.) is it illegal to USE unregulated and or offshore brokers as a US citizen? 2.) will it effect me paying my taxes on forex? 3.) i obviously haven’t made a lot of income yet as a new trader, so should i be worried about filing my taxes from 2019? 4.) how much income as a trader should i bring in before i start having to report it to the IRS? if anyone can answer these questions for me, it will be greatly appreciated lol. googling them hasn’t been giving me the most direct answers i’ve been looking for, but i did see a few other reddit posts that helped generate an answer.
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.
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).
Tax on Foreign Exchange Conversion Service under GST
The implementation of GST (Goods And Service Tax) on July 1, 2017 has revised the tax structure of transactions on several goods and services, including forex services in India. The revised rates for forex servicescome as a welcome move as the taxes often lie between 0.05% to 0.18% of the total forex transaction. When partaking in any kind of foreign exchange services like currency exchange, money transfer, or buying a forex card, one is only expected to pay the GST; and as per the directive from the Government of India, one is expected to pay 18% on the forex transactions that comes under the taxable value bracket. So what is “taxable value”? Taxable value is the set portion of the transaction upon which tax is levied. This reduces the amount of tax one has to pay on forex services greatly. Currently the government has set up 3 slabs of taxable value, based on the amounts of transactions. Slab 1: Up To Rs. 1 Lakh: On forex transactions up to Rs. 1 lakh, the taxable value stands at 1%, and the minimum taxable value is at Rs. 250. Here 1% of Rs. 25,000 is Rs. 250. Thus for transactions up to Rs. 25,000, the taxable value is Rs. 250. 18% of this taxable value (Rs. 250) is a mere Rs. 45. Hence the minimum tax one has to pay in Slab 1 is Rs. 45. Similarly, the maximum payable tax is Rs. 180. Slab 2: Rs. 1 Lakh to Rs. 10 Lakh: In Slab 2, the taxable value is calculated as 1000 + 0.5% of the amount above 1 lakh. Considering the value of transaction to be Rs. 5 lakh, then Taxable value = 1000 + (0.5% * 4) = 1000 + 2000 = 3000 Actual tax = 18% of 3000 = Rs. 540. Similarly, calculating the lower limit (tax on Rs. 1 lakh transaction) and upper limit (tax on Rs. 10 lakh transaction), we get the lower and upper limit of taxes for Slab 2, which is Rs. 180 and Rs. 990, respectively. To know more about Service Tax on Forex Transactions in India, visit source blog. Source: https://yourexpertguide.wordpress.com/2019/04/12/tax-you-have-to-pay-on-foreign-exchange-transactions-in-india/ https://preview.redd.it/ea33mq8vles21.png?width=1400&format=png&auto=webp&s=9d6317492a9ee544fb60b392e7fd9b938e10b721
Hey I’m just starting out trading on the Forex market, and I just wanted to know as a resident of the United States what are the steps or process you go about to file your taxes on the earning you made off of Forex?
Filing taxes on forex profits and losses can be a bit confusing for new traders. In the United States there are a few options for Forex Trader. First of all, the explosion of the retail forex market has caused the IRS to fall behind the curve in many ways, so the current rules that are in place concerning forex tax reporting could change any time. Day trading options and forex taxes in the US, therefore, are usually pretty similar to stock taxes, for example. Having said that, there remain some asset specific rules to take note of. Futures. Gains and losses under futures taxes follow the ’60/40’ rule. The rate that you will pay on your gains will depend on your income. 60% of the ... 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). 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 traders in the US who trade with a US broker have two options available to file their taxes. The two sections of the tax code relevant to US traders are Section 988 and Section 1256. Both sections were initially applied to forward contracts, but nowadays they’re also relevant to retail Forex traders.
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