Home trading on stock exchanges, with manual or automatic trading software has become a thriving home market. And a way to make good income. But what are the tax liabilities for someone within the U.S. Now directly trading ie buying and selling the actual stocks will attract tax, but many countries, such as the U.K have spread betting companies where you do not actually buy or sell the stocks, you are betting on them moving up or down, and in the U.K profits from winning bets are non taxable. Within the U.S this amounts to online gambiling and isn't possible, but what if you have an overseas account with the overses companies, will you still be stuck with the fed wanting their cut of you winnings.
plbank.pl | Window Shopper |
10/20/2012 - 11:35 am
All investments come with the risk of losing money. The first months of
trading forex are not easy for anyone, in fact, even professionals can make
bad trades.
To answer the original question... The Feds want their cut of your 'investment' income. You can guarantee you'd be expected to pay. I prepare taxes, but you should see a competent CPA.
F-S-B companies in the UK must have a UK bank account and address to register new accounts, then it seems most US citizens won't have to worry about it.
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The same rules apply anywhere, I believe. It doesn't matter where you live, you still have to pay taxes for your income to that country. You could profit from some trading which takes place in Switzerland broker's account, but you are still living in the US.
Yes, you will need to consider the tax, it doesn't matter if you're doing the forex trading in US or in another country.
Greetings
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Message Edited by ChristineL on 01-11-2010 01:50 PM
Financial Spread Betting companies in the UK are not allowed to open accounts to US sitizens, and thus you won't be able open a spread betting account unless you have UK bank account and address.
As mentioned before, that's why in the US retail traders prefer futures and options trading and forex. US is the main contributor to the growth of forex trading.
Financial Spread Betting Guide
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Message Edited by NicoleD on 01-26-2010 04:57 PM
The important thing is where you are located, not where the trades take place. Because you are living in the U.S., your profits are subject to both federal and state tax.
luckystrike | Window Shopper |
1/20/2010 - 5:44 am
There is no such thing as tax free trading in the United States - all income is taxed. This is why traders in the USA tend to prefer futures and options as they provide them with gearing i.e. the ability to multiply their returns.
Andy
http://www.financial-spread-betting.com
Message Edited by luckystrike on 01-20-2010 05:45 AM
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Message Edited by NicoleD on 01-20-2010 11:29 AM
plbank.pl | Window Shopper | 10/20/2012 - 11:35 am
trading forex are not easy for anyone, in fact, even professionals can make
bad trades.
dkh55 | Performer | 10/2/2010 - 5:35 am
hroyo | Window Shopper | 9/2/2010 - 1:59 am
jbeidle | Contributor | 12/2/2009 - 1:53 pm
rdlrn19 | Window Shopper | 1/8/2010 - 8:19 pm
praet123 | Window Shopper | 1/26/2010 - 5:56 am
BizResearcher | Window Shopper | 1/12/2010 - 1:08 pm
luckystrike | Window Shopper | 1/20/2010 - 5:44 am
mrhelpful | Contributor | 1/20/2010 - 8:25 pm
NicoleD | Former Moderator | 1/21/2010 - 10:50 am
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