Where do I fill short term losses in Forex?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

Where do I fill short term losses in Forex?

 
4 Replies
Level 6

Where do I fill short term losses in Forex?

Retail Forex traders fall under Section 988, which covers short-term foreign exchange contracts like spot Forex trades. Section 988 taxes Forex gains and losses like ordinary income.

In TurboTax, you enter Forex gains and losses as Other Reportable Income. A loss is entered as a negative number. Describe it as Forex loss (Section 988).

In TurboTax, open your return and follow these steps:
  • Click on Federal Taxes, then on Wages and Income
  • Under All Income, locate the Less Common Income section
  • Click Show more and click Start next to Miscellaneous Income at the bottom
  • On the next page, click Start next to Other Reportable Income (see attached screenshot).

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Returning Member

Where do I fill short term losses in Forex?

Forex traders can declare whether they will report under the 988 Section or a 1256 Section.  The 1256 Section provides a 60/40 long term/short term breakout.  This is about a 305 savings.  Uncertain how to utilize Tubortax here for the 1256. 

Returning Member

Where do I fill short term losses in Forex?

Oops/  That is a 30% savings.

Returning Member

Where do I fill short term losses in Forex?

I also forgot that you use the 6781 Form to report both the losses and gains as reported on the 1099-B.

Dynamic Ads
v
Privacy Settings