Forex Trading & Taxation in the U.S

[ANDYfx]

I have spent some time wondering where best to put this; first i considered putting it in the 'Beginners Questions' Column, but it isn't really a beginner's question. I guess the administrator will have to make a final decision on its rightful place.

I have been trading Forex from Nigeria, where i can say i do understand the tax system considerably. However, I would be re-locating to the United States pretty soon and i need to be sure of their tax system as it affects forex traders. Although i have read before that forex income is not tax-deductible, the information i have been gathering from the U.S IRS website seem to imply otherwise. I am also told the last place to make an inquiry would be from the IRS themselves, so i am posting this here in the hope that i'd find a U.S - based forex trader who could put me through.

[Poocher]

Originally Posted by ANDYfx

I have spent some time wondering where best to put this; first i considered putting it in the 'Beginners Questions' Column, but it isn't really a beginner's question. I guess the administrator will have to make a final decision on its rightful place.

I have been trading Forex from Nigeria, where i can say i do understand the tax system considerably. However, I would be re-locating to the United States pretty soon and i need to be sure of their tax system as it affects forex traders. Although i have read before that forex income is not tax-deductible, the information i have been gathering from the U.S IRS website seem to imply otherwise. I am also told the last place to make an inquiry would be from the IRS themselves, so i am posting this here in the hope that i'd find a U.S - based forex trader who could put me through.

This place is popular among pro's but I haven't used them:

http://www.tradersaccounting.com/index.php

[ANDYfx]

Originally Posted by Poocher

This place is popular among pro's but I haven't used them:

http://www.tradersaccounting.com/index.php

Thanks Poocher, will check it out

[AshFX]

Hi Andy, I'm not based in the US, so wouldn't really be able to help you.

However, what I'd say is... if you're good enough to be making enough profit in FX to be thinking about tax, then it's not really a beginners question hey.

[larry]

There is a e-easy form for next yr. They ask how much you made. And then they tell you to send it in.

[usbajonas]

TradersAccounting.com based in Phoenix Arizona USA

[managedfx]

This a great top to post on for the forex traders who didnt know. Thanks, also, I really like this forum. Keep it up!

[Camilla]

As a US citizen, I can tell you that you must pay taxes on your forex profit, unless you choose an offshore broker.

[adria]

There is a very powerful wealth building tool available to Americans known as the IRA. You and I have the ability to use an IRA to invest in non-traditional investments like Foreign Currency. I know this sounds crazy, but it is absolutely true and legal. Most IRA companies only allow you to invest in traditional assets like stock, bonds, and mutual funds.

There are a few ways to fund your IRA account. You can rollover funds from an old 401k or Qualified plan, transfer an existing Traditional, SEP, Simple or Roth IRA, or you can just start a new IRA with a personal contribution if you don't currently have a retirement plan set up.

The set up process can take anywhere from a few days to a month. But once you have chosen the IRA the best meets your financial goals and you have set up and funded your IRA account you can begin investing in the Forex market.