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Question: Tax on forex trading gains between 2 account holder?
(Posted by: Cy Fong on 2010-03-10 23:37:36)
If a trading account with a forex broker is a joint account between Jack & Jill, how should tax be paid on the gains from trading? Is it A) Jack pay tax on 50 % of the gain and Jill pay tax on the other 50 % B) Either Jack or Jill pays tax on 100 % of the gain ( the other party pays none at all) If answer is non of the above, what would be the way to go about it according to US tax law? Thanks. Taxlady answered that if Jack puts in 75 % of the money in than, he pays tax on 75 % of the gains (and Jill 25 %). But what if Jack puts in 100 %, does this means he pays taxes on all gains while Jill pays nothing? |
