Forex Taxes

(sigh) Hate rats..
what if i will register with 1 of my foreign passports ( I have 2, plus yea, i am usa resident, never thought i will regret it ) ?
Can I be tax-free this way?

I hate paying taxes to the communist branch of my government (IRS) as much as anyone. But I will give the money grubbing bastards their pound of flesh rather than risk jail time.

Don't get me wrong. I don't object to paying a fair tax to support the infrastructure of my great country, but I do object to paying extra taxes to be spent on programs that are not for the common good of all the people.

So use every legal means available to reduce your tax, then just give it to the bastards and go enjoy the rest (what's left of it).

Best source for trader tax information is www.greencompany.com.

Order their book today so you'll be aware of end of year tax planning for the upcoming year.

Dial

I know from experience. It is best to keep them off your back.

Regarding our loving IRS

A very wise man once said..........Render unto Ceasar what is Ceasar's

OTE=helenlois]Regarding our loving IRS

A very wise man once said..........Render unto Ceasar what is Ceasar's[/quote]

Indeed... Cool guys should stick to barter and leave the paper to the governments. Sinse gold'n'silver gone, there are no money in the world anyway. Look at pennies- they are copperless since 1982.

Just an example. You come to a casino, put 10K on black, win, 20 on black, win, 40 on black, loose. Bought some liquer and went home.
You start forex with 10K, win, you working 20, win, you working 40 K, loose. You are just about to buy your liquer and go home, but... creepy- squeeky voice of the most hatefull creature in the Universe, comes into play--- "Exxxxcccuse me? Within the past day/month/year you've had an additional income totalling 30 000 USD. You owe us 12000 dollars"

Actually, a trader is able to net profits & losses and then pays the tax on the net of the two.

In the case you have explained no taxes would be due because his net is zero.

AK

Let me clarify - that is the position in the U.S. anyway.

Gamblers pay taxes on their profits and losses. They fill out tax forms with their occupation as a gambler, show profit and loss, and pay what is due. At least they're supposed to!

But this hatefully creature is wrong, you have only losses, how he can say that you have a 30.000 USD additional income?

in the US you will get a Form 1099 B (Proceeds from broker and barter exchange transactions) which will show your gain or loss from the year on line 8.

Actually, almost all forex brokers do not send you a 1099B or report your activity to the IRS; it is up to you to do so.

There are various methods to do so on various parts of your personal Form 1040.

AK

Before loosing everything, you won 10K on 10 and 20 on 20. Thats make 30K.
Well, hopefully I am wrong

Yes but at the end you have 0! Profits and losses compensate each other.

Yes only net gains/losses in U.S.

Hi all

I know that you don't have to pay tax on spread betting gains in both Ireland and England, but i'm wondering how does it work with Forex ? Like say I opened an account in America which way would the tax work when I bring the money back into ireland, does anyone know ?

Thanks in advance

Billy

My mate DAN is an expert on this subject.

So if you were not to elect out of IRC 988, would you just report net trading gains/losses on schedule D or would you have to report each and every trade?

I have withdrawn sums but never payed taxes

Major countries have laws and agreement concerning double taxation. For individuals the first level is the personal income tax. For US residence ( anyone living in the US ) whatever your source of income your ought to declare it and pay it to the US goverment. For non US residence, having a Forex account in the US do not require you to pay any taxes to the US government. BUT you ought to pay it to the country where you are residing. If your country has no tax on Forex income, then you do not need to pay taxes earned on Forex. The second level for the individual is the fortune tax. It is very very small in most countries. In this electronic age, my advice is pay that little bit and have peace in the future.
If anyone wants to skip the taxes, there are ways to do it SAFELY and legally.
Example - Open a bank account in Vaduz OR Switzerland ( eventually Monaco or Singapore ) These countries have concrete western laws and stable governments. I recommend the UBS bank. Secret banking account are still available to a certain extend. The bank's requirement is a complete check to make sure it is not laundered drug money or illegal money. You can open it in any currencies. Once opened, you are in complete control of your money through e-banking. You can check your account or tranfer your money through the click of a mouse.
Next come the forex account. You can open an account with a swiss broker charging only 2 pips spread for the majors. That way your profits or transaction between your broker and you is your swiss bank account. In Switzerland Forex and stock speculation is tax free. Thus you can keep your Forex earnings safely , legally and confidentially taxe free. If you permit your next of kin ( wife /father etc ) to know your code, then in case something happens to you, they can still keep the bank account or transfer it back to your home without any problem.

If anyone is interested in opening a Forex account (start with minimum USD2000.- ) in Switzerland, I will be able to direct you to a good one. Starting with 2 pips spread upwards. ( No swiss banking account needed and I am not charging you any fee) PM me.
If anyone wants advice to open a banking account ( USD minimum 6 digits ) in Singapore or Switzerland you can also PM me.
Actually this is part of my consultant business. My customers are people who wants to protect their money from depreciation. In unstable countries and in time of war, the Swiss Franc is still prefered.
Thanks
Highway