Currency Trading Tax & Regulatory Treatment: Update After The SNB Shockwave (Recording)

10 Feb

There are important differences between trading and deposit losses and an election you can file for lower tax rates on forex gains. Choose your currency product wisely for tax, regulatory and money-protection purposes.

Feb 10, 2015 at 4:15 pm EST



Join Green NFH CPA and forex tax expert Robert A. Green in this Webinar.

If you are one of many who got caught on the wrong side of the forex trade when the Swiss National Bank (SNB) surprised the markets with a huge policy change, you probably incurred significant losses. In this Webinar, Robert Green CPA explains how to handle these losses on your tax returns. He also explains how you can elect to use lower Section 1256(g) 60/40 tax rates on gains.

First, it’s important to segregate your losses into two camps: the forex trading loss (Section 988 or capital loss) incurred on your open positions that were liquidated or closed by you or your broker, versus losing a deposit in an insolvent financial institution (Section 165). The latter also happened to traders who made money on this market event.

Green discusses money safety issues for account holders with forex brokers and ways to avoid this risk using other currency instruments to trade. Like trading currency futures on futures exchanges, currency binary options on Nadex, and currency ETFs.

Many American forex traders disregarded CFTC rules (for retail off-exchange forex) by trading with non-registered offshore brokers offering leverage far above CFTC limits of 50:1 on major currencies and 20:1 on minor currencies. Several offshore brokers and a few U.S.-based forex brokers are facing financial strain or insolvency as a result of offering excess leverage to their customers during the SNB shockwave. Green discusses leverage and regulation. If you trade currencies in any form you should not miss this important Webinar recording.

blog_post Tax treatment for forex and deposit losses after SNB’s surprise policy change



As all of you know, this has been a difficult time for me as well as my family for past few years. However, without Mr. Green's leadership, expertise and knowledge, and the rest of this team's efforts, I would have been in a worse situation than I am in now. I cannot find words especially at this happy time to show my gratitude for all of the work every one of you did to put this case together to show my true intention for this business. My special thanks goes to Deborah King with her detailed work and knowledge, Amanda Smitson for her skill and communication, Mark Feldman with his experience and representation, Darren Neuschwander with his review effort and last but not least Mindy Bartholomew with her patience. Again, awesome job and team work ... every one of you who was part of this case deserve a big kudos. Add another big win for Green & Company.