Your Questions About Foreign Currency Trades Taxed
James asks…What's the law on paying taxes for return on investment?If i have substantial return on investment from foreign currency, what taxes will I pay? Don't know if it matters but I bought the physical currency from a dealer/broker, not traded through an exchange of any sorts. Also, do you pay fed and state tax on that?Barry answers:You pay capital gains tax on your profits which is currently 15%. This 15% is fed tax and there are no state taxes on capital gains. However, there are some