Quote from ZoneTrooper:
Forex is taxed one of two ways.
If you make an internal record that you are trading 1256 Contracts, then you are taxed with a 60/40 split long cap gains/short cap gains.
Meaning, if you are profitable at years end, put a letter in your file cabinet and post date it 1/1 of the profitable year and sign it. (Hmm, probably not the honest thing to do, but who would know. I'm always profitable from year to year so this is not a problem for me.)
If you are unprofitable, hmm, forget the exact section of code, but I believe its 981 or something like that. This allows you to claim the whole loss right from your income.
And if you are a Refco Customer and profitable, you'll end up paying taxes on your profits, even though you can't get to those monies. (Which is where I fall in.) Your doomed, just doomed if you don't have the money some place else. Because the IRS just doesn't care. They will make you pay penalties. Your doomed I say. Because it is clear now that those monies will not be unfrozen until after April 15.
