Question by Alex L: If I make income trading currency on the foreign exchange, must I report this on my federal taxes?
I want to start trading currency on the foreign exchange but am not sure if I would need to report my returns as income on my federal income tax return. If I do need to report it, how so?
Best answer:
Answer by hrblockchristinew
Yes you are supoposed to claim any income tha tyou receive on your taxes.
This advice was prepared based on our understanding of the tax law in effect at the time it was written as sit applies to the facts that you have provided. http://www.hrblock.com/taxes/tax_tips/index.html
http://www.hrblock.com/taxes/tax_calculators/index.html
Christine
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Unless you live outside the country, you must report your world-wide income on your federal tax return.
If you’re an investor–and not a professional trader–foreign currency is a capital asset. Gains and losses from trading capital assets go on Schedule D.
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