Thanks for joining us today, David2023!
Crypto currency owned for one year or less before spending or selling it:
The profits are typically taxed at your ordinary income rate.
If you held it for more than one year, any profits are considered long-term capital gain tax rates.
Forex trades can be taxed differently:
If you trade 1256 contracts with Forex, your trades are taxed at 60% long-term capital gains and 40% short-term capital gains. If you're trading 988 contracts, you treat losses and gains as ordinary income. The investor can choose to trade as either 1256 or 988. Individuals must decide which to use by the first day of the calendar year. https://www.law.cornell.edu/uscode/text/26/988
Here is a great link that goes into more details:
https://www.investopedia.com/articles/forex/09/forex-taxation-basics.asp
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