Forex losses
Varies
Can You Write Off Forex Losses?
Short answer: Spot forex losses are usually ordinary (Section 988) and fully deductible; forex futures get 60/40 capital treatment.
You can elect out of 988 before trading.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
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medium risk
Forex losses
Varies
Individuals / Personal Taxes
Other Expenses
Personal Tax Deductions
Spot forex losses are usually ordinary (Section 988) and fully deductible; forex futures get 60/40 capital treatment.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Spot forex losses are usually ordinary (Section 988) and fully deductible; forex futures get 60/40 capital treatment. You can elect out of 988 before trading.
Category
- Personal Tax Deductions
personal deduction
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