Where to enter currency trading losses? (2024)

I have some losses from trading GBP/USD in the spot market. I was hedging a position in a UK ETF. I'm guessing the IRS will view these as separate positions.

Where should I report the currency trading losses?

Thanks

• Not A Product Question

‎September 26, 20238:47 AM

Foreign exchange (Forex) traders fall under Section 988, which covers short-term foreign exchange contracts like spot Forex trades.

Forex gains and losses are reported on your tax return as Other Income. Report a loss as a negative number.

To report your Forex loss, please follow these steps:

• Click onFederal Taxes(left menu)then onWages &Income/Income & Expenses(up top)
• UnderAll Income, locate theLess Common Incomesection
• ClickShow moreand clickStartnext toMiscellaneous Income, 1099-A, 1099-Cat the bottom
• ClickStartnext toOther Reportable Income
• Describe the amount asSection 988 Forex gain orloss (enter a negative number for a loss)

Foreign Exchange Reporting Discussion

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Foreign exchange (Forex) traders fall under Section 988, which covers short-term foreign exchange contracts like spot Forex trades.

Forex gains and losses are reported on your tax return as Other Income. Report a loss as a negative number.

To report your Forex loss, please follow these steps:

• Click onFederal Taxes(left menu)then onWages &Income/Income & Expenses(up top)
• UnderAll Income, locate theLess Common Incomesection
• ClickShow moreand clickStartnext toMiscellaneous Income, 1099-A, 1099-Cat the bottom
• ClickStartnext toOther Reportable Income
• Describe the amount asSection 988 Forex gain orloss (enter a negative number for a loss)

Foreign Exchange Reporting Discussion

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"