Tax Questions

[Robert Halterman]

Hi all. I am a US citizen from SC and I was wondering if there are any legal ramifications of NOT paying taxes on forex capital gains. Does anybody else withdrawal money from trading account earnings? Normally, I will withdrawal $150 - $500 a week from my trading account without paying taxes. Since it is a small amount, the IRS will not pick it up.

Another thing, how much will I be taxed in the event I decide to report it and pay the taxes just to be in compliance of the tax laws? Any comments are greatly appreciated!

 

[Pharaoh]

I usually just throw my account statements in the pile with everything else my accountant asks for and hope he doesn't get me arrested.

You do need to pay taxes on your profits. If it's only a few dollars, the penalties for getting caught won't be too severe, but if it's a significant amount, pray there's space for you inside Club Fed so you don't end up in some rat-infested federal prison filled with murderers and drug dealers.

These two threads should help some:

https://www.forexpeacearmy.com/forex-forum/forex-articles/250-tax-issues-forex-traders-usa.html

https://www.forexpeacearmy.com/fore...-question-forex-profits-us-tax-treatment.html

Double-check all the rules before signing your name on the forms. The tax code changes all the time and the IRS expects you to know it better than their own employees do.

 

[jotekfinance]

Speaking as an expat, they are now trying to even DOUBLE tax expats living outside the U.S., that is, tax us normally as if we were in the U.S. AND expect us to pay taxes in the country we are in.
And yes, any money made outside the U.S. is subject to taxation. Though you need to see if there is a bilateral tax agreement first (the place where I am didn't have one until 2 or 3 years ago).

 

[Pharaoh]

Not to mention those happy little FBAR forms if your foreign accounts reach $10k.

The gov't has so many special bits of fun awaiting expats and even those who just want to have some money offshore that this probably needs a separate thread (or two or three) to cover all the possible ways to find yourself begging for a plea bargain.