Chapter 12
Tax Considerations
IN THIS CHAPTER
Understanding your tax status
Reporting gains and losses in your taxes
Getting the scoop on notices, forms, and deductions
Being aware of specific currency tax details
After all the research, monitoring, and fancy ins and outs, you finally make a profit with your currency trades (woo-hoo!), but don’t celebrate yet. You have one more hurdle before you pop the champagne: taxes (cue the groans and shrieks). Understanding how this tax stuff works is important now since (as you know), it’s not what you make, but rather what you keep, that matters. Keeping more of the fruits of your trading labor is the final consideration in your trading process.
Even though taxes are treated at the “tail end” of the trading process, it’s important to discuss your trading goals and activities with your tax consultant before you embark on your currency trading activities. You’ll be glad you did.
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