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Basic US Tax question

  • #1
  • First Post: Aug 25, 2010 10:33pm Aug 25, 2010 10:33pm
I was wondering if you lose money trading forex (over a few months) and then quit trading, do you still have to report this to the irs?
  • #2
  • Aug 26, 2010 6:28am Aug 26, 2010 6:28am
Quoting Scott_16
I was wondering if you lose money trading forex (over a few months) and then quit trading, do you still have to report this to the irs?
No.
  • #3
  • Aug 26, 2010 4:49pm Aug 26, 2010 4:49pm
Why not? It can be deducted from your taxable income as a loss. Even be carried over from year to year.
  • #4
  • Aug 26, 2010 5:02pm Aug 26, 2010 5:02pm
Quoting traderjai_inhi
Why not? It can be deducted from your taxable income as a loss. Even be carried over from year to year.
The questions was, Do you have to...," not can you. There are good reasons not to report a loss if the $ amt is fairly low.
  • #5
  • Aug 26, 2010 5:54pm Aug 26, 2010 5:54pm
Sure, if you like paying more taxes.. then dont. Besides, I was answering him, not you.
  • #6
  • Aug 27, 2010 11:06am Aug 27, 2010 11:06am
Thanks, very helpful

Also, another thing i was wondering is if you are profitable and have to pay taxes is there a difference if u use a firm such as fxcm-uk vs a US broker like Alpari?
  • #7
  • Aug 29, 2010 2:48pm Aug 29, 2010 2:48pm
can anyone help me with this question?
  • #8
  • Aug 30, 2010 1:03am Aug 30, 2010 1:03am
Quoting Scott_16
Thanks, very helpful

Also, another thing i was wondering is if you are profitable and have to pay taxes is there a difference if u use a firm such as fxcm-uk vs a US broker like Alpari?
If you are a US citizen trading for your own personal acct, no.

You really should get your education/answers from professionals, not this forum, which is nothing more than a social website, not unlike Facebook.

These guys are highly reputable and know the trading world inside and out, but I'm biased; I'm a customer: greencompany.com
  • #9
  • Aug 31, 2010 12:26am Aug 31, 2010 12:26am
Quoting Slack
The questions was, Do you have to...," not can you. There are good reasons not to report a loss if the $ amt is fairly low.
Are you sure of that?? Look at this one:

http://www.nydailynews.com/ny_local/...172m_bill.html

He has to pay 172 million of dollars because he has not reported his losses to the IRS, and with the leverage, IRS believes that he has won 500 million, when he has really lost 10,000 dollars, LOL!
  • #10
  • Aug 31, 2010 12:39am Aug 31, 2010 12:39am
Quoting Trad3r
Are you sure of that?? Look at this one:

http://www.nydailynews.com/ny_local/...172m_bill.html

He has to pay 172 million of dollars because he has not reported his losses to the IRS, and with the leverage, IRS believes that he has won 500 million, when he has really lost 10,000 dollars, LOL!
That case wasn't about claiming a loss, it was about not filing income tax return.

"Esparza Bofill didn't file an income tax return for the year he was here swapping stocks - and that's leading to big problems with Uncle Sam."

Lesson, if you are going to trade, you better file and pay your taxes.
  • #11
  • Aug 31, 2010 1:15am Aug 31, 2010 1:15am
Quoting Slack
That case wasn't about claiming a loss, it was about not filing income tax return.

"Esparza Bofill didn't file an income tax return for the year he was here swapping stocks - and that's leading to big problems with Uncle Sam."

Lesson, if you are going to trade, you better file and pay your taxes.
But if you lose more than you win, and you end up losing all in your account, do you have to file income taxes or report that to the IRS?
  • #12
  • Last Post: Aug 31, 2010 1:20am Aug 31, 2010 1:20am
Quoting Trad3r
But if you lose more than you win, and you end up losing all in your account, do you have to file income taxes or report that to the IRS?
There's some good info here: http://wiki.answers.com/Q/Do_you_hav...xes_every_year
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