Foreign Currency Tax Question
I’ve been into a foreign currency investment for less than one year and I’m trying to prepare for exchanging currency at the bank. I’m trying to find out about tax obligations, legal forms, and the best way to deposit the initial funds (into different banks or different accounts). In addition to tax prep advice, I would also be interested in investment advice assuming this investment pays off. Thank you
Money made on currency exchange is taxable at capital gains rates above $200. Maybe 15% depending on your situation. Any loses could be claimed up to a net $3000 per year including any other capital gains or losses. Proceed with caution when investing in currencies. Many people have lost a lot of money speculating in this type of investment.