Is it true that FOREX profits are not taxable until withdrawn from your account?

I thought that the video was very interesting. There may not be a law that directly states you must pay federal taxes, but if you don't pay, it's just a matter of time until they will take it from you, along with interest and penalties. Even more concerning, you might even go to jail if you don't pay up. A pretty tough penalty to pay for something that's not really illegal!

Without taxes, I believe our quality of life would be lessened, so they are a necessary evil. However, I also believe that it probably is, or at least should be, illegal to make it so difficult to compute your taxes that you actually have to hire someone to firgure it out for you. Now that is the real crime and it should be illegal.

Paying taxes should be a very simple process. Everyone... and I mean everyone, should have to pay the same rate, regardless of what they make. Assume that rate is 10%. If you make a million, you pay 100,000.00. If you make 10,000.00, you pay 1,000.00. Forget the write offs and the loop holes. A flat tax would be Clean and simple and the coffers would probably be over flowing.

The only possibly fair tax is a sales tax, everything else is a robbery.

so how does tax work in the uk for the forex is it 40 % of every thing you draw out of your forex acount

Democracy may not be ideal... but it is definitely better than any other political system.


Lou

I agree. Tax the consumption of individuals. Tax collection would be so much easier to do and to regulate since a record would be made on every sales receipt. In the US the IRS would shift to following up with businesses rather than individual wage earners. The need for a large IRS would be reduced thus reducing the cost of collection.


Now for the problem. In the US the government redistributes money by taxing income. Poorer people are not taxed at all or at low rates and receive assistance. Wealthier people are taxed. Some of this money goes to fund assistance programs for the poor. (I am simplifiying here). The problem is that under a sales(consumption) tax, the poor would be taxed.

We do not want a solution to this that identifies who gets taxed and who doesnt at the point of purchase. Possibly increasing the amount of assistance for the poor might be a solution.


Lou

When submitting questions such as this, state which country your refering to.

Reference the U.S. ....This is FALSE...unfortunately you are responsible for taxes on your account balance even if you have not withdrawn it.

Taxing questions should be submitted to our tax expert thread if it is related to the U.S.

That's one of the biggest rubs in regards to government "assistance". Why should someone that works and earns an income have to give any of it up to assist someone that chooses not to work? Whoever thought it was a good idea to take money from those that work, and give it to those that don't or won't work was crazy. All that does is motivate the non workers to remain non workers and it also discourages the workers, because they won't receive all of the money they earn. It's ludicrous!

If a person is healthy, then they should get nothing for contributing nothing. The only people that should receive any assistance are those that are mentally or physically unable to work. Welfare states are destined to fail at some point. I believe in helping those that are less fortunate, but I don't believe it is right for the government to take my hard earned money from me and give it to those that don't want to work.

A sales tax is not a bad idea, but I still like the flat tax. If you earn a lot, you pay more, if you earn less, you pay less. Regardless of which tax system we have (I'm talking US), I don't like the fact that the government gives part of it to those that don't want to work to earn their living. Anyone can get a job in the US if they want one. Why work though when you can get a bigger "assistance" check for NOT working. Believe it or not, there are many that choose this route in the US.

I have just viewed the stumble video on the IRS and the Central Bank. I found this video to be very informative and I would hope that the rest of the US and the world would setup and notice what is happening. The end is as near and a grain of rice inserted into one body. Lets not let this happen, too many have fought and died to make this a free world to just turn our heads and say it could happen. It is happening and unless we the people stand up and say enough is enough the Group that controls the World Bank will control each and everyone of us.

Ljs

Remember that there are two different types of FOREX, 1256 (futures) contracts which are taxed at the end of the year as if all positions are closed, and Sec 988 trades which if not oped out of are taxed only when the positions are closed. Hope this helps. Traders Accounting, Jim Crimmins

For those of you in the UK...

Today I phoned the HMRC helpdesk and asked about forex gains offshore. The answer is that they are taxed as Capital Gains. That applies to MAs as well as your own account. It was also pointed out that if any tax was collected in the US, for example, then this can be offset against tax due in the UK.

The reason for offshore is simply that I have two accounts and neither is within the UK, but the reasoning should still apply if your broker happened to be in the UK.

I did not ask about what if trading fx was your only occupation, and I still have a day job so it would not apply in my case. However one could 'retire', then you would not have a job 'per se', and the capital gains method of assessment should still apply.

Hope that helps.

Thanks for that

I called them a few weeks ago and after speaking to various people, all of whom didn't have a clue, was promised a call back from their specialist. I'm still waiting - obviously not such a specialist at dialling phone numbers

I have since spoken to a friend who trades on the stock market and his answer was much the same as yours so that has clarified things - thanks.

Kind Regards
Steve

You are most welcome.

I admit I was surprised at the clarity of their reply, although it did take about a minute of muffled discussion that I could not quite hear.

Bon chance !

I believe it was Winston Churchill that said "Democracy is the worst form of government...Except for all the others"