End of the year P+L

domi93 · Dec 20, 2005

Grat job Ivan and Great thread

uninvited_guest · Dec 20, 2005

I'm also a big fan of Forex, on a small scale though and am waiting for my frozen RefcoFX account to get transfered to FXCM.

I think forex is better than Options and with leverage from 10:1 to 200:1 Forex is for VERY LOW RISK investors to VERY HIGH RISK investors, plus trading 24hrs. With my limited Forex experience I even set up a Forex website and have just added a "Forex Forum".

PS.....good job Ivan, and I think December will be good for you thanks to the USD/CAD.

jerry11901 · Dec 21, 2005

Congratulation Ivan.
It was also a good year for me. finely turned from sideways to profitable trader .Have three accounts at:
-OANDA 140% up
-CMS Forex 120%up
-FXsolution 60%up
I wonder who can handle my income tax. It`s not simple any more â¦

Ivanovich · Dec 21, 2005

Well done

140 and 120% Wow! Are those accurate?

If you have income tax problems, you need to move somewhere there is no income tax

OddTrader · Dec 21, 2005

Quote from Ivanovich:

(and I'm too lazy to do it manually, but it was a good month).

Have you tried to download a CSV file (from the TRANSACTION HISTORY page according to the period you specify) to be read with a spreadsheet program? That should be handy for various analyses you want.

Very good results, Ivan. Apparently many full time professional managers may be not as good, if your MaxDD is small %.

Ivanovich · Dec 21, 2005

Yes, I know all about the CSV - but I'm lazy

I'll just wait until the end of the year, and append the December data.

jerry11901 · Dec 21, 2005

Quote from Ivanovich:

Well done 140 and 120% Wow! Are those accurate?

If you have income tax problems, you need to move somewhere there is no income tax

Where wold that be?

Ivanovich · Dec 21, 2005

There are lots of places, my friend. Many of them tropical!

jerry11901 · Dec 21, 2005

Quote from Ivanovich:

There are lots of places, my friend. Many of them tropical!

Well -lets my children finish collage first ,then I can rethink that ...

late apex · Dec 21, 2005

Quote from jerry11901:

I wonder who can handle my income tax. It`s not simple any more â¦

Jerry, why do you believe that your taxes are not simple any more, what with your forex gains?

Not to get away from the excellent subject of this thread, but, since we are talking about profitable forex trading... First, if you have a gain, it's not complicated at all. If you are an individual US taxpayer, you:

- elect out of IRC Section 988, internally (within your own records);

- enter your combined forex P&L, less interest, on 1040 Form 6781;

- report all your forex interest from each dealer's 1099-INT in the same way your report any other interest income.

That's it. You're done. With software such as TurboTax or TurboTax Online, it's no more complex than without forex.

See this link for details:

http://www.greencompany.com/EducationCenter/GTTRecCurrency.shtml#futuresmag

Second, be cautious about retaining a CPA, unless you verify that they have specific experience with preparing forex traders' tax returns. I understand mistakes are not uncommon. The last thing you want is not to take advantage of both 1) the favorable 60/40 long-term / short-term tax treatment, and 2) the performance record approach (not having to worry about or report individual trades), available to you.