Taxable Income for Forex Trading: An Academic Guide

5 min read

Taxable income forex is income that has been earned from trading in foreign currencies in the markets. This income is subject to the tax code of the relevant jurisdiction that the income was earned in, as well as any applicable international tax laws. Taxpayers who make a profit trading in foreign currencies must report it as part of their ordinary taxable income, and can use certain deductions to lower their overall taxes on the income. Transactions involving foreign currency can also be subject to decisions from regulatory bodies, such as the U.S. Securities and Exchange Commission, which can dictate when and how income and capital gains taxes apply.