July 17, 2011
At U.S. Tax time in Forex trading, do you pay taxes on the active account balance or withdrawals?
By Planet Wealth
At U.S. Tax time in Forex trading, do you pay taxes on the active account balance or withdrawals? It seems crippling to tax working investment capital. I have not taken out any funds, except for commissions, as I am slowly growing the account. But even under 1256, that can lead up to a huge chunk of cash that one would have to withdrawal just to payoff the IRS thus setting me back on the growth. Your answer would be greatly appreciated. Thank you.
Topics: trading tips | 1 Comment »
One Response to “At U.S. Tax time in Forex trading, do you pay taxes on the active account balance or withdrawals?”
Comments
« Financial Spread Betting in the Current Economy | Home | Forex Trader – How to Become a Forex Trader »
July 17th, 2011 at 12:46 am
You are going to report the sales minus the cost of buying.