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No, forex trading is taxed as capital gains, like any other asset. It also opens up an interesting loophole for companies with cash streams in other currencies
by efficax 5y ago
No, forex trading is taxed as capital gains, like any other asset.
It also opens up an interesting loophole for companies with cash streams in other currencies, if those currencies are falling in value relative to the dollar. They can cover their local costs in local currency but then convert profits to USD and declare a loss for a tax writeoff.
- the_optimist 5y agoCan you reference the formal accounting and financial mechanisms under which this activity supposedly generates a tax write-off? Specifically: a tax write-off that is not also an actual economic loss.