I want to start trading currency on the foreign exchange but am not sure if I would need to report my returns as income on my federal income tax return. If I do need to report it, how so?
Trading indicators are best used along with money management and good risk control, using trading indicators alone will not enable you to be a successful trader, even if you learn everything about currency trading the market is just too random and unless risk is controlled, over time your account will slowly get wiped out, regardless how good a “trader” you think you are.
This question was about currency trading and there have been some pretty good answers that should help in your trading, and especially in relation to currency trading, the answer has been posted in the categories listed below:
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You must report the information.
Unless you live outside the country, you must report your world-wide income on your federal tax return.
If you’re an investor–and not a professional trader–foreign currency is a capital asset. Gains and losses from trading capital assets go on Schedule D.
Yes you are supoposed to claim any income tha tyou receive on your taxes.
This advice was prepared based on our understanding of the tax law in effect at the time it was written as sit applies to the facts that you have provided. http://www.hrblock.com/taxes/tax_tips/index.html
http://www.hrblock.com/taxes/tax_calculators/index.html
Christine