Forex income and taxes

[alex]

Hello I am new to this type of account and am trying to complete my tax return.. I have talked to the IRS and read books and seem to get conflicting information regarding the tax treatment of the forex account activity. I have a loss from my investment in this account. Where should I put this loss amount. Also, is it required that I list every transaction? Any help would be appreciated.

[taxforum]

You definitely do not have to put every transaction down but the ending total.. Also you must to keep a good track of all you trading activities just in case you will get audited.

If your trading activity is a business, your trading expenses would be reported on Form 1040, Schedule C, Profit or Loss from Business (Sole Proprietorship).

If you trading activity is not a business but just your hobby-like way to make money you will report that on Form 1040, Schedule A (PDF).