How in US, profit from Forex is taxed ? .? -

Can anyone tell me please, how in US profit from Forex is taxed? If shown with links to exact law regulations, I would be grateful to that one. Thank you very much. For now...It is pretty much up to YOU to claim it. (But it is taxed as regular income...in the short term...and as capital gains...in the long term. I hope this helps.) I found this online article, prepared by a CPA, which references specific IRS regulations, that helps to explain the murky waters of taxation on Forex gains made. Please note that, though I could regurgitate what is said in the article, the article itself is its best voicebox. I hope this helps. best of success. Depending on the types of trades you are doing with FOREX, it might fall under the 1256 Contracts rule, and you could split you gains to a 40% short term and a 60% long term tax rates. If you don t know if you qualify, ask a tax accountant. It is taxed as short-term capital gains, so it s taxed pretty heavily. Depending on your income tax bracket, that could mean paying as much as 35% on your gains. So you need to make a nice profit in order to actually make money. Totally possible in forex, but also totally possible to lose very quickly if you don t know what you are doing and manage your risk.