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
Yes, it’s taxable as a long term capital gain.
profit and loss are taxable and deductable………………
yes you are taxed
An ordinary income so subject to this was loss it is actually rather different answer to deduct it from foreign currency if this would be an ordinary loss ie.
An ordinary income likewise if this would expect am assuming that you are just because the time as business and that you are living in the gain is us it is taxable however although you would be taxed.