I trade major pairs: EUROUSD, GBPUSD, AUDUSD, USDJPY
but also cross pairs: EUROJPY, GBPJPY, AUDJPY
These cross pairs are really combination of primary pair and dollar yen:
EUROJPY = EUROUSD * USDJPY
GBPJPY = GBPUSD * USDJPY
AUDJPY = AUDUSD * USDJPY
Since these cross rates are manufactured from dollar based pairs, can it be argued that can be opted out of 988? You can go to future market and trade this combination to get the cross pairs.
Is it stretching things?
BY THE WAY, ONE CME future trading, they have created ability to trade cross pairs above:
http://www.cme.com/trading/prd/fx/crossrates.html
So I guess we can justify ALL primary and CROSS RATES listed are 60/40? That would be a great argument... I think we're covered.
Quote:
Originally Posted by GreenTrader Tax
If you elected out of IRC 988 (for major currencies), report your forex gain like a futures gain on Part I of Form 6781. Summary number just like reporting a futures gain.
You benefit from the 60/40 tax rate split (long term versus short term capital gains tax rates) at all tax brackets.
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