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Tax question 3 replies

tax question (new trader)

  • #1
  • First Post: Feb 14, 2007 6:49pm Feb 14, 2007 6:49pm
hi.
basic question about taxes.

i went in the forex 6 months ago and i put up a measly 2000 dollars for play trading. sad to say, i lost all of my initial capital. do i have to pay tax still or do i only have to pay if i withdraw from my trading accoutn

regards
chris
  • #2
  • Feb 14, 2007 6:57pm Feb 14, 2007 6:57pm
Quoting wildfire888
hi.
basic question about taxes.

i went in the forex 6 months ago and i put up a measly 2000 dollars for play trading. sad to say, i lost all of my initial capital. do i have to pay tax still or do i only have to pay if i withdraw from my trading accoutn

regards
chris
Since this is an international forum, your country of origin would be a big help.

In most cases, once the trade is closed, it's taxable. However loosing all of your initial captial is not a bad thing tax wise, but a good thing. However I remember reading only $200-300 of your losses may be eligible. It's best to consult with a tax expert in your country of origin.
To be one with the market, you must first be one with yourself.
  • #3
  • Feb 14, 2007 7:15pm Feb 14, 2007 7:15pm
yes my country is canada.

since its tax season im just afraid that the taxman might come claiming to pay 6000 for a liquidated account.
  • #4
  • Last Post: Feb 14, 2007 8:11pm Feb 14, 2007 8:11pm
Quoting wildfire888
yes my country is canada.

since its tax season im just afraid that the taxman might come claiming to pay 6000 for a liquidated account.
Income taxes are only taken on just that, income (gains), not losses. If anything you are in for a rebate.
To be one with the market, you must first be one with yourself.
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