Yes, OANDA is a Forex and CFD broker and is regulated by Section 988 of the internal Revenue code. You would report your foreign currency loss as a Section 988 transaction  and treat it as an ordinary loss in accordance with IRS guidelines. This defaulttreatment of foreign currency gains is to treat it as ordinary income. https://limefx.name/ By default, retailFOREX traders fall under Section 988, which covers short-term foreign exchangecontracts like spot FOREX trades.

• By default, retailFOREX traders fall under Section 988, which covers short-term foreign exchangecontracts like spot FOREX trades.
• Section 988 taxes FOREX gains and losses likeordinary income, which is at a higher rate than the capital gains tax for mostearners.
• “Except asotherwise provided in this section, any foreigncurrency gain or loss attributable to a section 988 transactionshall be computed separately and treated as ordinary income or loss (as thecase may be).”
• An advantage of Section 988 treatment is that any amount of ordinaryincome can be deducted as a loss, where only $3,000 in capital gains losses canbe deducted.

Section 988 taxes FOREX gains and losses likeordinary income, which is at a higher rate than the capital gains tax for mostearners. An advantage of Section 988 treatment is that any amount of ordinaryincome can be deducted as a loss, where only $3,000 in capital gains losses canbe deducted. “Except asotherwise provided in this section, any foreigncurrency gain or loss attributable to a section 988 transactionshall be computed separately and treated as ordinary income or loss (as limefx company reviews thecase may be).”

• This defaulttreatment of foreign currency gains is to treat it as ordinary income.
• By default, retailFOREX traders fall under Section 988, which covers short-term foreign exchangecontracts like spot FOREX trades.
• “Except asotherwise provided in this section, any foreigncurrency gain or loss attributable to a section 988 transactionshall be computed separately and treated as ordinary income or loss (as thecase may be).”
• You would report your foreign currency loss as a Section 988 transaction  and treat it as an ordinary loss in accordance with IRS guidelines.
• Section 988 taxes FOREX gains and losses likeordinary income, which is at a higher rate than the capital gains tax for mostearners.