Forex Tax Treatment

[Taylorbrown123]

Hello,

Does anyone know if swaps and commissions can be deducted on US federal income taxes?

Thanks!

 

[rakhi]

When trading stocks (held less than one year), investors are taxed at the 35% short-term rate. When trading futures or options, investors are taxed at a 23% rate (calculated as 60% long-term times 15% max rate plus 40% short-term rate times 35% max rate).

 

[gauri]

Hello, the default method of taxation for currency traders, treats the gains or losses from forex transactions as ordinary gains or ordinary losses.
Thank you