TT,
OK, that makes sense, but isn't the P/L calculated with interest included already? At least that's how it shows up in Meta Trader...the total P/L of a position includes the interest paid/earned already.
So, the logic makes sense, right? Here's some math:
1 EUR/USD open 1.3000 close at 1.3050 (P/L = $500) with a swap of -$13.06
1 USD/JPY open 119.34 close at 119.00 (P/L = -$278) with a swap of +24.78
How would this conceivably be taxed? I assume if we're just straight misc-interest, then basically it would be
profit = (total P/L) + (total swap)
profit = $222 + $11.72
profit = $233.72
I assume there may be another way of taxing this other than taxing on the income of $233.72?
OK, that makes sense, but isn't the P/L calculated with interest included already? At least that's how it shows up in Meta Trader...the total P/L of a position includes the interest paid/earned already.
So, the logic makes sense, right? Here's some math:
1 EUR/USD open 1.3000 close at 1.3050 (P/L = $500) with a swap of -$13.06
1 USD/JPY open 119.34 close at 119.00 (P/L = -$278) with a swap of +24.78
How would this conceivably be taxed? I assume if we're just straight misc-interest, then basically it would be
profit = (total P/L) + (total swap)
profit = $222 + $11.72
profit = $233.72
I assume there may be another way of taxing this other than taxing on the income of $233.72?
DislikedDid my own research and that is what you are calling a swap, the interest received or paid will become part of your expense as a trader/investor. as an investor negative interest can only be written of against any positive interest you have. Depending upon what type of business you are trading in you may be able to write all of your interest expense off as a business expense.Ignored