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Old 04-14-2007, 04:37 AM
GreenTrader Tax GreenTrader Tax is offline
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forex loss

If you did not elect out of IRC 988, report your forex trading loss on line 21 of Form 1040 as Other Loss.

Don't enter it like a futures contract on Form 6781 unless you elected out of IRC 988.

There is no 3k capital loss limitation on line 21 of Form 1040, whereas there is a capital loss limitation with Form 6781 - which then moves over to Schedule D.
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