TAXATION // USA

The US Trader's Guide to IRS Tax

LAST UPDATED: APRIL 2026
REGION: UNITED STATES

Taxation for US traders is complex. Understanding the difference between ordinary income and capital gains is vital for your net profitability.

1

Section 1256 Contracts

Learn how major indices and futures are taxed at a favorable 60/40 long-term/short-term capital gains rate.

2

The Wash Sale Rule

Be careful of selling at a loss and rebuying the same security within 30 days, as the loss may be disallowed for tax purposes.

United States Compliance Note

The information in this guide is specific to the United States regulatory and financial landscape. Trading in United States is governed by local authorities, and tax treatment is determined by regional tax laws. Always ensure you are following the latest regional guidelines.

FAQs

Does forex have a special tax rate?

Yes, forex defaults to Section 988 (ordinary income), but you can opt into Section 1256 in some cases.

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