2005 was my first year trading spot ForEx. Quite an experience. And, yes, like most over-confident first timers, I lost it all. However, we only put up what we were willing to risk.

After filing an extension and purchasing the Green Trader Tax Guide, I have most of my questions answered. However, I do have a few remaining specific questions.

I will be taking the loss as an ordinary capital loss by using line 21 on the 1040. However, I am curious about line 32 and 32a of Schedule C. Does this section get filled out? Of course if 32a is filled out, it gets entered on line 12 of the 1040 (Business Loss).