Settling the tax tab on FX

reedbenjamin

New member
Many traders learn the hard way that profits aren’t “net of tax” until you file. Classify each trade correctly: spot FX gains may be capital in some jurisdictions, while funding bonuses or interest can be ordinary income. Record trade date, pair, size, entry/exit, fees, and local-currency value at execution. Midway reminder: a short Paying taxes on forex explainer helps you choose FIFO vs. specific identification and spot deductible expenses. Track rollovers/swaps separately so interest isn’t double-counted. If you’re profitable, consider quarterly estimates to avoid penalties. When in doubt, align your logs with exchange statements so an audit reads like a ledger, not a mystery.
 
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