Newbie stumped on tax reporting

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Hi, everyone:

I'm a two-month newbie just getting my feet wet and trying to learn. Could anybody tell me how to report FOREX profits and losses in our IRS returns?

Is there a special form for listing FOREX trading results, or a spot in regular forms where we can report a summary of our annual trading activity. Is it highly complex or is it no more difficult than reporting capital gains and losses in stocks and mutual fundsto the IRS? I really need help :^)

Thanks in advance,

Nod

 

direct call them

Forex falls into two categories.

Foreign currency trading as part of a business--which falls under line 21 of the 1040 as other income/loss. Or investments that go on schedule D.

When you have a loss, it makes a huge difference where you list the money...and you can almost guarantee an audit if you try to claim a loss on line 21.

 

Of course, this type of income remains very difficult for any government to track and many people still undoubtedly ignore the rules. Doing so is taking a big chance though because one can never be sure and ignorance of the law is not a defense.

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