Categories: Income

What is Ordinary Income? A Guide to Forex Trading

Ordinary income from forex trading stems from the regular profits made from currency trading. This income comes from trading currency in the foreign exchange markets. Traders can buy and sell currency pairs online and through their brokers. Any profits made from currency positions are then taxed ordinary income (depending on the country of residence) according to their individual income tax rate. This tax can be paid in a variety of ways, including using a prepared form or paying a committed broker to take care of the taxation process in your name. Since the cost of currency can sometimes be quite volatile, profits made from this type of trading can often be quite large if done correctly.

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Categories: Income

Does Capital Gain Tax Rate Include Ordinary Income?

Capital gains tax rates apply to profits gained through the sale of assets such as stocks, bonds, commodities or real estate. Depending on the country or jurisdiction, capital gains tax rates on different assets may vary. In some countries, the rate may even be zero until certain thresholds are reached. Some jurisdictions may also include profits from foreign currency exchange, also known as Forex, under the capital gains tax rate. The tax treatment of Forex trading income depends on the country of residence.

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