How To Report Forex Trades On 2016 Tax Returns & 2017 Planning

16 Mar

Mar 16, 2017 at 1:00 pm EST

Forex traders may have the best of both worlds: Ordinary loss treatment skirting the capital loss limitation, or lower 60/40 capital gains tax rates in Section 1256(g). Unfortunately, you have to choose in advance with an election.

Join forex tax expert Robert A. Green CPA as he explains:

– Off-exchange forex vs. on-exchange regulated futures contracts;
– Forex Section 988 ordinary gain or loss treatment;
– How to report Section 988 forex trades on 2016 tax returns;
– How to make a capital gains election to opt-out of Section 988;
– A case for using Section 1256(g) lower 60/40 capital gains tax rates on the main currencies and why it’s uncertain with the IRS;
– How to report forex using Section 1256(g);
– Rollover trades, interest and open P&L;
– Broker tax reporting, tax forms, and summary reporting;
– IRS and state tax notices questioning forex tax treatment;
– CFTC and NFA rules for forex.



As a new trader, I wanted to find out from the best in the business what my best course of action would be regarding trading and taxes. Robert was extremely helpful in answering all my questions and suggesting a plan of action. I look forward to working with him and his team in the future while also directing my trader friends with questions to Green Trader Tax.

MC La Verna, CA