Schedule D Tax for Forex

S

showtime23

Is there an easier way to fill out the schedule D for currency trading or do I have to fill out each buy/sell transaction that I made?

thanks
 
I believe that in most cases currency trades are treated like Section 1256 contracts for tax reporting purposes and the reporting is usually done on a total net profit basis (I believe they are reported on From 6871). They are also afforded special tax treatment.

You should go to the IRS publications website and do a search for Section 1256 contracts and also look for Publication 550 for detail information.
 
Quote from AllenCook:

I believe that in most cases currency trades are treated like Section 1256 contracts for tax reporting purposes and the reporting is usually done on a total net profit basis (I believe they are reported on From 6871). They are also afforded special tax treatment.

You should go to the IRS publications website and do a search for Section 1256 contracts and also look for Publication 550 for detail information.
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Does 1256 include spot market?

Is their any tax break for trading forex spot or does that only apply to the futures?
 
I am not a tax expert but I understand that it applies to both. However, I also believe that there can be some special circumstances regarding "spot" but in general Section 1256 includes any regulated futures contract, any foreign currency contract and I have received information in the past that it would also include foreign listed futures (in my case I trade TOPIX, HSI, DAX, etc.)
 
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