Yes ... ALL sales or income from ALL sources MUST be reported. Failure to do so will get you an IRS audit letter in a couple of years that you will eventually have to deal with.
Investments by themselves are not reported, but you must report any trading activity that results in a gain or a loss, as well as interest and dividend income. You should get a tax statement from each broker service. You may get a “combined tax statement“ or you may get a separate 1099-DIV, 1099-INT, and 1099-B, which report dividend income, interest income, and capital gains and losses. All these statements must be included on your tax return. In the unusual event that you have invested with a service that does not issue tax statements, you must still report interest, dividends, and capital gains on your tax return.
It's usually a good idea to report any profits you make from your investments on your taxes. Each investment app may have different reporting requirements, so it's important to familiarize yourself with their guidelines. Consulting with a tax professional or checking with your local tax authority can provide you with accurate information tailored to your situation.
Have you heard about Forex Prop Firms? They offer an alternative to traditional brokers and can be an interesting option to explore. It provides insights and reviews on some of the top Forex Prop Firms out there. It might be worth checking out if you're looking for more options in the investment world.
Still have questions?Make a post