Are there any tax benefits in investing in a forex private managed account over investing in stocks?
First, we are not tax advisors. The tax laws change frequently and we recommend you seek the advice of a professional in this area. In general, there are several tax advantages. Stocks that are not held for one year are taxed at the short term capital gains rate. Forex gains are taxed similar to futures contract gains, where 60% of the gains are taxed at the LONG TERM capital gains rate which is currently only 15%. This potentially saves thousands in taxes over trading stocks. Another benefit is the ease of completing your tax return. With stock, all individual transactions must be shown on the Schedule D form. With our managed accounts, you simply show the account balance as of January 1 (or when you opened the account during the first year), the balance at the end of the year, and the gain. Individual gains are not listed. This greatly simplifies completing this portion of your tax return.
Related Questions
- What are the benefits of portfolio diversification, such as by opening a managed Forex account in addition to my other investments?
- Are there any tax benefits in investing in a forex private managed account over investing in stocks?
- Are there any special tax implications that can result from a Managed Forex Account?
