Forex strategies revealed | FSR Forum

Last year was the first year I traded Forex, and I now need to finish up my taxes. I've always done it myself via Turbo Tax online, but they don't explicitly deal with currency trading.

I know from short-term stock trading that I have to list all my entries/exits separately, and I get a 1099 listing all my transactions, so that's pretty straightforward.

I am assuming I treat currency trading similarly, but I am actually not sure how to treat it. First, should I be expecting a 1099 or some other form from my broker? I have yet to receive one. I assume something is coming? Second, my MTF transactions don't properly reflect the actual transactions because my broker is FIFO while MT4 platform isn't. Third, my only actual cost of entry into a position is the spread and I suppose the margin requirement while the position is held. It's not like stocks where you buy 100 shares at X and sell them at Y. So, I'm not even certain how to show the transactions if I were to try and go through the effort of duplicating it.

How do you guys treat this on your taxes? And even if the answer is "my accountant does it" I need to know what to even give my accountant.

Any help is appreciated. Thanks.

The most comprehensive details I've met at
http://www.greencompany.com/EducationCe ... ency.shtml

Thanks for the link. That was not what I was expecting - I thought I'd be getting a 1099.

Looks a bit messy. Great...


So, I have a realized loss for the first year (big surprise, I didn't make millions right out of the gate!), and according to this article, it would appear that Section the 988 form is something I will need to fill out. I guess I'll need to see if Turbo Tax accomodates that. I suppose it's also good to get a professional opinion to make sure I'm not doing something stupid.

I'm kind of surprised I haven't seen more discussion on this kind of thing, since it's a little out of the ordinary.

Tax tips for forex traders in 2010 - video link:

http://www.moneyshow.com/video/video.asp?t=3&wid=4826