{"id":2350,"date":"2024-06-11T11:56:06","date_gmt":"2024-06-11T11:56:06","guid":{"rendered":"https:\/\/sunsocerschools.org\/index.php\/2024\/06\/11\/i-lost-money-trading-foreign-currency-through-2\/"},"modified":"2024-06-11T11:56:06","modified_gmt":"2024-06-11T11:56:06","slug":"i-lost-money-trading-foreign-currency-through-2","status":"publish","type":"post","link":"https:\/\/sunsocerschools.org\/index.php\/2024\/06\/11\/i-lost-money-trading-foreign-currency-through-2\/","title":{"rendered":"I lost money trading foreign currency through OANDA   I have a printed copy from them of my net realized loss but no 1099B"},"content":{"rendered":"<p>I actually use a non regulated broker <a href=\"https:\/\/lunarcapital.live\/\">https:\/\/lunarcapital.live\/<\/a> out of pure ignorance and have access to the total loss amount. Yes, OANDA is a\u00a0Forex and CFD\u00a0broker\u00a0and is regulated by Section 988 of the internal Revenue code. I still treat it as \u201cother income\u201d and provide the -$12,000 in the box correct? I just do this as another source  of income. By default, retailFOREX traders fall under Section 988, which covers short-term foreign exchangecontracts like spot FOREX trades.<\/p>\n<ul>\n<li>You would report\u00a0your foreign currency\u00a0loss as a\u00a0Section 988 transaction\u00a0 and treat it\u00a0as an ordinary\u00a0loss in accordance with IRS guidelines.<\/li>\n<li>By default, retailFOREX traders fall under Section 988, which covers short-term foreign exchangecontracts like spot FOREX trades.<\/li>\n<li>Section 988 gains or losses are reported on Form 6781.<\/li>\n<li>I actually use a non regulated broker out of pure ignorance and have access to the total loss amount.<\/li>\n<li>Section 988 taxes FOREX gains and losses likeordinary income, which is at a higher rate than the capital gains tax for mostearners.<\/li>\n<\/ul>\n<p>You would report\u00a0your foreign currency\u00a0loss as a\u00a0Section 988 transaction\u00a0 and treat it\u00a0as an ordinary\u00a0loss in accordance with IRS guidelines. This defaulttreatment of foreign currency gains is to treat it as ordinary income. An advantage of <a href=\"https:\/\/lunarcapital.world\/\">Lunar Capital forex broker<\/a> Section 988 treatment is that any amount of ordinaryincome can be deducted as a loss, where only $3,000 in capital gains losses canbe deducted. Section 988 taxes FOREX gains and losses likeordinary income, which is at a higher rate than the capital gains tax for mostearners. Section 988 gains or losses are reported on Form 6781. You would report this as other reportable income in Turbo Tax.<\/p>\n<ul>\n<li>Yes, OANDA is a\u00a0Forex and CFD\u00a0broker\u00a0and is regulated by Section 988 of the internal Revenue code.<\/li>\n<li>I still treat it as \u201cother income\u201d and provide the -$12,000 in the box correct?<\/li>\n<li>You would report this as other reportable income in Turbo Tax.<\/li>\n<li>I just do this as another source of income.<\/li>\n<li>You would report\u00a0your foreign currency\u00a0loss as a\u00a0Section 988 transaction\u00a0 and treat it\u00a0as an ordinary\u00a0loss in accordance with IRS guidelines.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>I actually use a non regulated broker https:\/\/lunarcapital.live\/ out of pure ignorance and have access to the total loss amount. Yes, OANDA is a\u00a0Forex and CFD\u00a0broker\u00a0and is regulated by Section [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[65],"tags":[],"class_list":["post-2350","post","type-post","status-publish","format-standard","hentry","category-forex-trading"],"_links":{"self":[{"href":"https:\/\/sunsocerschools.org\/index.php\/wp-json\/wp\/v2\/posts\/2350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sunsocerschools.org\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sunsocerschools.org\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sunsocerschools.org\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sunsocerschools.org\/index.php\/wp-json\/wp\/v2\/comments?post=2350"}],"version-history":[{"count":0,"href":"https:\/\/sunsocerschools.org\/index.php\/wp-json\/wp\/v2\/posts\/2350\/revisions"}],"wp:attachment":[{"href":"https:\/\/sunsocerschools.org\/index.php\/wp-json\/wp\/v2\/media?parent=2350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sunsocerschools.org\/index.php\/wp-json\/wp\/v2\/categories?post=2350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sunsocerschools.org\/index.php\/wp-json\/wp\/v2\/tags?post=2350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}