noob_trader

Hi All,

Many are switching over their accounts to FXCM UK due to pending NFA regulations. I am not sure what are the tax implications of this,

I know Jason from FXCM on the ambassador thread commented that FXCM does not report to IRS in any case, this only means that the onus is on us,the individual.

I am hoping this thread can be a place holder for various resources regarding the tax implications.

Here is something I found from "dailyfx forums"


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GreenTrader Tax GreenTrader Tax is offline
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International Tax

U.S. citizens and/or residents (green card holders or physically present in the US) owe taxes on worldwide income.

You must report your forex trading gains or losses on your US and state income tax returns, whether your forex broker is located in Switzerland or in the US.

I like to say Isle of Jersey (a tax haven off the coast of England) or New Jersey, it makes no difference.

Read my article on Global Tax for Traders here http://www.greencompany.com/Educatio...lTraderTax.pdf.

Forex is for the most part an unregulated market. But US FCMs (brokers) are highly regulated. Consider that some offshore FCMs may not be regulated in the US and that can matter if you have deposit or other problems.

Thanks.

Thanks.
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Checkout the PDF, looks like you may not get favorable treatment of 60/40 on foreign trades.


Cheers,

Noob

spunky

Yea, I have always reported mine, irregardless of where my broker is, was


Just my 2cents

I am curious about the VAT; if it gets piled on, see above post

noob_trader

Here is Another interesting link regarding this same subject.

Foreign Financial Accounts Reporting Requirements

Foreign Financial Accounts Reporting Requirements

So I am thinking if you have a FXCM UK account, you have to fill a separate form and send it. It is not a big deal if you account balance is less than $10,000 ......... which is fine for me now, but I would like to get there some day

I am still debating about moving my account to FXCM UK, I am not really liking the idea of moving to FXCM UK ....

Cheers,

Noob

spunky

I have had no problems so far with anything. I will try and withdraw some money next month and see what happens


Good luck to all

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Unregistered

If a US citizen has FXCM UK account, How are the profits treated by UK? It is immaterial whether you withdraw the funds or leave them in the account. Do we owe tax to UK and at what rate? I know you will get to take the "foreign tax deduction" on your 1040 but don't know how much? Any one with specific inofrmation on the subject? Thanks.

spunky

Well, I closed my FXCM account, got tagged with a 15.00 wire fee from FXCM and a 15.00 wire fee from my own bank, no tax paperwork of any kind yet ?

__________________
The Beast will feed you my son, and you can live, grow and prosper in its shadow, but you must be quick,nimble and most importantly patient.