Tuesday, February 20, 2007
What is the tax rate on Capital gains when investing in the FOREX? -
that depends on country to country. Usually Forex traders receive a significant tax advantage over securities traders under Section 1256: reporting capital gains on IRS Form 6781 (Gains and Losses from Section 1256 Contracts and Straddles) allows you to split your capital gains on Schedule D, with 60% taxed at the lower long-term capital gains rate (currently 15%) and 40% at the ordinary or short-term capital gains rate of up to 35%. That combined rate of 23% amounts to a 12% advantage over the ordinary (or short-term) rate. Tax reporting for Forex traders can be rather complicated. Even the IRS does not yet have a clear process. It is best to contact a tax expert who specializes in Forex issues. Finexo is best for saving high capital Gains Rates are calculated as per normal market tax rates. You will definitely find your answer at one of our financial blog providing free tips and guidance for investment in Indian stock market in particular and world markets in general. Do visit us at http://indian-share-tips.blogspot.com For free profit making day trading tips in Indian stock market - researched hot intraday shares analysis for NSE amp; BSE. http://stock-market-tip.blogspot.com For Indian stock tips which can make you a Millionaire. http://day-trading-shares.blogspot.com For free daily tips for Reliance, Infosys, SBI, ACC, ONGC amp; Tata Steel http://abc-stock-market.blogspot.com For the technical analysis of stock market which is presented in a simplified manner. It depends on where you are trading from. Your forex broker can best answer this question for you. Try getting in touch with your broker s customer support either by phone, email or online chat.
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