By default, retailFOREX traders fall under Section 988, which covers short-term foreign exchangecontracts like oanda review spot FOREX trades.
- I still treat it as “other income” and provide the -$12,000 in the box correct?
- Yes, OANDA is a Forex and CFD broker and is regulated by Section 988 of the internal Revenue code.
- I just do this as another source of income.
- You would report your foreign currency loss as a Section 988 transaction and treat it as an ordinary loss in accordance with IRS guidelines.
- Section 988 gains or losses are reported on Form 6781.
You would report your foreign currency loss as a Section 988 transaction and treat it as an ordinary loss in accordance with IRS guidelines. This defaulttreatment of foreign currency gains is to treat it as ordinary income. An advantage of Section 988 treatment is that any amount of ordinaryincome can be deducted as a loss, where only $3,000 in capital gains losses canbe deducted. Section 988 taxes FOREX gains and losses likeordinary income, which is at a higher rate than the capital gains tax for mostearners. Section 988 gains or losses are reported on Form 6781.
- I just do this as another source of income.
- Section 988 taxes FOREX gains and losses likeordinary income, which is at a higher rate than the capital gains tax for mostearners.
- An advantage of Section 988 treatment is that any amount of ordinaryincome can be deducted as a loss, where only $3,000 in capital gains losses canbe deducted.
- You would report this as other reportable income in Turbo Tax.
You would report this as other reportable income in Turbo Tax. I actually use a non regulated broker out of pure ignorance and have access to the total loss amount. Yes, OANDA is a Forex and CFD broker and is regulated by Section 988 of the internal Revenue code. I still treat it as “other income” and provide the -$12,000 in the box correct? I just do this as another source of income.
