Comments on: What is the tax rate for a forex market? http://forextradingadvice.info/what-is-the-tax-rate-for-a-forex-market/ Thu, 22 Oct 2009 11:14:52 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: v b http://forextradingadvice.info/what-is-the-tax-rate-for-a-forex-market/comment-page-1/#comment-532 v b Sat, 13 Aug 2005 05:33:37 +0000 http://forextradingadvice.info/what-is-the-tax-rate-for-a-forex-market/#comment-532 Did you keep records that state you expected to be taxed under IRC 1256 (capital gains rules) rather than IRC 988 (ordinary interest income)? If yes, then when you receive your 1099 at the end of the year you will get a 60/40 split of activity onto your schedule D. 40% is treated as short term; 60% as long term. Long term gains would get a better tax rate than short term gains. (If for some reason you don't get the 1099, you must still report the income.) Did you keep records that state you expected to be taxed under IRC 1256 (capital gains rules) rather than IRC 988 (ordinary interest income)?

If yes, then when you receive your 1099 at the end of the year you will get a 60/40 split of activity onto your schedule D. 40% is treated as short term; 60% as long term. Long term gains would get a better tax rate than short term gains. (If for some reason you don’t get the 1099, you must still report the income.)

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