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I have some losses from trading GBP/USD in the spot market. I was hedging a position in a UK ETF. I'm guessing the IRS will view these as separate positions.
Where should I report the currency trading losses?
Thanks
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posted
September 26, 20238:47 AM
last updatedSeptember 26, 20238:47 AM
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Where to enter currency trading losses?
Foreign exchange (Forex) traders fall under Section 988, which covers short-term foreign exchange contracts like spot Forex trades.
Forex gains and losses are reported on your tax return as Other Income. Report a loss as a negative number.
To report your Forex loss, please follow these steps:
- Click onFederal Taxes(left menu)then onWages &Income/Income & Expenses(up top)
- UnderAll Income, locate theLess Common Incomesection
- ClickShow moreand clickStartnext toMiscellaneous Income, 1099-A, 1099-Cat the bottom
- ClickStartnext toOther Reportable Income
- Describe the amount asSection 988 Forex gain orloss (enter a negative number for a loss)
Foreign Exchange Reporting Discussion
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September 27, 202310:51 AM
856
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Where to enter currency trading losses?
Foreign exchange (Forex) traders fall under Section 988, which covers short-term foreign exchange contracts like spot Forex trades.
Forex gains and losses are reported on your tax return as Other Income. Report a loss as a negative number.
To report your Forex loss, please follow these steps:
- Click onFederal Taxes(left menu)then onWages &Income/Income & Expenses(up top)
- UnderAll Income, locate theLess Common Incomesection
- ClickShow moreand clickStartnext toMiscellaneous Income, 1099-A, 1099-Cat the bottom
- ClickStartnext toOther Reportable Income
- Describe the amount asSection 988 Forex gain orloss (enter a negative number for a loss)
Foreign Exchange Reporting Discussion
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
September 27, 202310:51 AM
857
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