Currency trading taxed?
July 2nd, 2008
bov_troy asked:
Lets say the Japanese Yen is trading at 100 for one US dollar and I buy $10,000 worth from my bank; so a million yen. I put the yen in a safe deposit box at the bank and leave it alone. Then, lets say 10 years later the yen is trading at 1 for 1 (I don’t know how likely that is, it’s just for the sake of argument). That means I made $990,000 right? Would I be charged taxes on that and if so which tax would apply?
RODRIGEZ
Lets say the Japanese Yen is trading at 100 for one US dollar and I buy $10,000 worth from my bank; so a million yen. I put the yen in a safe deposit box at the bank and leave it alone. Then, lets say 10 years later the yen is trading at 1 for 1 (I don’t know how likely that is, it’s just for the sake of argument). That means I made $990,000 right? Would I be charged taxes on that and if so which tax would apply?
RODRIGEZ