Do you have to pay taxes on forex trading?
FOREX. FOREX (Foreign Exchange Market) trades are not reported to the IRS the same as stocks and options, or futures. FOREX trades are considered by the IRS as simple interest and the gain or loss is reported as “other income” on Form 1040 (line 21). No special schedules or matched trade lists are necessary.
How can I avoid paying taxes on forex?
The only legal way to avoid taxes in the US is to give your money to someone in another country with no strings attached and hope they will give you some back when you need it.
How do taxes work with forex?
This is the most common way that forex traders file forex profits. Under this tax treatment, 60% of total capital gains are taxed at 15% and the remaining 40% of total capital gains are taxed at your current income tax bracket, which could currently be as high as 35%.
How much tax do traders pay?
If you are a trader, and make a profit on selling long-term shares, you are exempted from paying tax on up to Rs. 1 lakh of profit earned. However, you will be taxed at 10% on the remaining profit. On the other hand, if you profit from the sale of shares held for less than a year, your gains are taxed at 15%.