I have a forex account with Oanda. Do I report the profit/losses as 1099-B or 6748? How can I go about finding thiese forms?

raheel_rajabali — Mon, 03 Jun 2019 17:43:08 GMT

By default, retail FOREX traders fall under Section 988,...

MinhT — Mon, 03 Jun 2019 17:43:11 GMT

By default, 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, which is at a higher rate than the capital gains tax for most earners. An advantage of Section 988 treatment is that any amount of ordinary income can be deducted as a loss, where only $3,000 in capital gains losses can be deducted.

Report the gains/losses in this way:

In TurboTax, open your return and follow these steps:

Click on Federal in the left hand column, then on Wages and Income on top of the screen
Scroll down to 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 (Losses are reported as a negative number).

topic By default, retail FOREX traders fall under Section 988,... in Get your taxes done using TurboTax

I have a forex account with Oanda. Do I report the profit/losses as 1099-B or 6748? How can I go about finding thiese forms?

By default, retail FOREX traders fall under Section 988,...