US Capital Gains Tax Rate: Facts & Figures for 2021

5 min read

The US capital gains tax rate for Forex trading can be fairly complex and confusing, especially if you are a newer trader. Generally, it’s important to understand the difference between capital gains, capital losses, and ordinary income to know what tax rates you should expect. Profits generated from Forex trading are officially considered capital gains, and short-term gains (made from trades held less than a year) are typically subject to more taxes than long-term gains (trades held for more than a year). Ultimately, traders should always consult a knowledgeable tax preparer or CPA to make sure they don’t overlook anything.