Let's address each one of these issues directly.
- In your first example, the gain is $2. You are correct with this calculation.
- The rules on foreign exchange gains in relation to personal transactions allow an exemption for any gains below $200 on each transaction. Your trading is considered a personal transaction unless you are in the business of currency trading.
- If your gains are under the $200 threshold per transaction, you do not need to report these gains. if you have separate transactions that result in losses, you are entitled to claim your losses. These do not need to be reported separately in the the other income section of your return but when you list the loss, you would label this as Forex Trading Loss and record the loss with a minus sign in front of the total. just keep your records on all the transactions.
Just as a reminder, make sure this is reported as other income and not in the investment section of your return. Currency trading results in an ordinary gain or loss and not a capital gain of loss. Just a reminder. Please rEach out if you have further questions.
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