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How to Report FOREX Losses ???


rony

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For tax purposes, money lost on the Foreign Exchange Market should be reported like any other stock losses or gains. Showing significant Forex losses can help you save money when the IRS is calculating the amount you owe them. Remember that to claim a capital loss from a Forex transaction, you must have realized the deduction, meaning that you must have sold the losing investment, not be holding it for future redemption. You can file your Forex capital loss on Form 1040 with the rest of your tax return.

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  • 3 weeks later...

Well, I see this thing here is talking about the tax we have to deal if we trade on forex trading here. It is depending on each government in the country where we live here. Because the rules and regulations and the law on each nation is different here. We can not describe it here, because very long

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I am not a huge trader so I don’t really look too much into these things as I feel it does not matter and I am from a country where Forex tax are not any issue while my earning is around 400-500 USD, so that is not too much for me to be much concern while losses are part of it so I can accept it.

 

I am also trading with OctaFX broker which goes further extend to help me with saving from losses, it is their ever so popular system of rebate service which is basically a cash back offer since whatever trade we do any pay spread we get 50-60% of it back, so in total 15 USD is the amount that is our profits after 1 lot size trade.

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  • 3 months later...

Frankly speaking I have never got into this situation since I live in a country where there is no tax for small earners like me, but changes if I start making millions yet till then I don’t need to worry and that’s why I have even preferred a great broker like OctaFX, it has decreased all kind of extra money to help us with low spread of just 0.2 pips for all major pairs and also swap free account option available for all traders.

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oh its for tax purposes! im really not sure how it works! from where i come from, lets just say there is a big loophole in the system, forex earnings comes as remitances with no tax on it!

Of course you are living in one country and cut your profit by taxes so you will get some kind of services from it. This is normal for citizen of one country but losses and then you get taxes from it that is a bad thing which i don't really love it. Only profit not loss.

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I don't really know for those countries who tax Forex traders but one thing I think that should be rightfully done is that traders should only pay taxes based on the profit they made. You can't tell someone who in the widest sense is bereaved due to losses to start paying tax and I wonder from where he would pay it.

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There are many ways even your losses usually taxed by them especially in advanced countries which relies on tax for sure. The forex transactionmust be reporeted all of those transaction no matter if you are making profit or losing, usually they will tax you through spread or comission from the broker.

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  • 1 month later...

does it really happen like you get taxed for loses? OMFG!! seriously, though to be honest, and its kinda bad and not, I dont pay any taxes for forex earnings, i get them as intl remittances.. the only fee i pay is 4 dollars transfer fee and some lose from really bad exchange rates all thanks to them hungry fat rich banks.  

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does it really happen like you get taxed for loses? OMFG!! seriously, though to be honest, and its kinda bad and not, I dont pay any taxes for forex earnings, i get them as intl remittances.. the only fee i pay is 4 dollars transfer fee and some lose from really bad exchange rates all thanks to them hungry fat rich banks.  

It depends on country man. There are certain countries where you get to pay tax no matter the kinda business you ar doing and it's non of their when you are trading in Forex which everyone knows is a risky business. If you are a member of such country, be it resident or citizen, the same obligation is what you will be charged for.

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  • 9 months later...

does it really happen like you get taxed for loses? OMFG!! seriously, though to be honest, and its kinda bad and not, I dont pay any taxes for forex earnings, i get them as intl remittances.. the only fee i pay is 4 dollars transfer fee and some lose from really bad exchange rates all thanks to them hungry fat rich banks.  

 

I think it depends on the policy of each country. There are countries that require taxing for traders, but there is not. In my country, it is not taxed for trading,. and the broker also there is no tax for trading, but usually there is a commission to the broker

 

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In each country the report for each trading's loss or profit is different, in my country no tax yet but when it will introduce i just hope they don' tax per transaction but instead per profit. If they tax per transaction it means we get more work to be done since we have spread+ taxes when opening a postion.

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If you want to trade in forex market, first of all you need to learn the basics of forex trading. You can learn the basics from different sources. But my suggestion is to open a demo account. It will help you to understand all the basics and techniques of trading practically. I started my trading with the demo account of Forex4you. It gave me opportunity to trade practically without any risk. It helped me to get knowledge about forex market.
 

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