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| Name | How Foreign Currency is Taxed Schedule D Section 1256 or Section 988 |
| Video Uploader | Video From Edu Matrix |
| Upload Date | This Video Uploaded At 30-04-2020 20:00:14 |
| Video Discription | Depending on if you are a qualified day trader or a foreign currency investor will determine how you are taxed. Learn to Trade in Forex Market for Beginners: Funny High Ranking Course Udemyhttps://buff.ly/36rqPoO IRS - Form 6781 Section 1256 https://www.irs.gov/forms-pubs/about-form-6781 This video shares the three possible options and explains which taxpayers should file a Schedule D or Section 1246 or Section 988. including the tax benefits and consequences. If you're on this channel because you purchased and are holding Iraqi Dinars, or the Vietnam Dong then you are a foreign currency investor and you more than likely will be taxed using Schedule D, not Section 988 or 1256 which I will discuss now. Thus this channel helps you devise ways to lower your tax liability by creating and implementing tax savings projects BEFORE you actually need them Section 1256 contracts and straddles are named for the section of the Internal Revenue Code that explains how investments like futures and options must be reported and taxed. Under the Code, Section 1256 Securities regarded as Section 1256 investments include: non-equity options foreign currency contracts regulated futures contracts dealer equity options dealer securities futures contracts If non of this sounds familiar to you then you definitely ARE NOT a Section 1256 Trader. Section 1256 are subject to a 60/40 tax split meaning 60% of gains or losses are counted as long-term capital gains or losses, and the remaining 40% is counted as short term. Section 988 is also a tax regulation governing capital losses or gains on investments held in a foreign currency. The gain or loss is determined at the time of the sale. Usually gains from foreign currency transactions are treated as ordinary income, whether earned by an individual or a corporation. Spot traders often use Section 988. Spot trading is when you buy and sell usually within a two day period. It's an easier way to be taxed, but Section 1256 can save you in the long run. It's important to decided how you want to be taxed before your first trade or shortly after. An advantage of Section 988 treatment is that ANY amount of ordinary income can be deducted as a loss, unlike the $3000 limit on capital gains losses. BUY IRAQI DINARS https://ebay.us/Tfd5sM |
| Category | Education |
| Tags | how foreign currency transacations are taxed | middle east | forex and taxes | section 1256 | schedule d | tax benefits section 1256 | how are day traders taxes | how are vietnam dong investors taxed | section 988 | how are iraqi dinar investors taxed | foreign currency |
