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  1. #1
    Rookie Member

    Tax for binary options !!!

    HI, i am a beginner i started like a month ago, and i made some nice amount of money with a system...but whatever...i need to know if i had to pay taxes to the IRS, and if so when i have to pay them, and they need any proof that those money came from binary options trading and i didn't done something illegal?
    Sorry for this silly question but...i really need to know this information, i want to continue making money trading.... is so easy then my last job

  2. #2
    Specialist Member LesterK's Avatar
    There is still little information about taxation of binary options both in USA and in Europe. As far as binary options will not be treated as profit from gambling they have to be taxed as all other personal income or as a result of trading the capital markets. I think in Europe the new regulation will ask the brokers to send information about the profits of their clients to the respective authorities in their countries and you will have to pay taxes on the positive balance of all your trading results at the end of the year. I am not sure about the situation in America but I think it will be almost the same. In some countries like England if the binary options are treated as gambling they are not taxable but that is a rare exception. If you have any other questions don’t hesitate to ask

    PS Check also the information in this link http://www.binaryex.com/taxes-on-bin...ading-profits/

  3. #3
    Rookie Member
    It is quite complicated because in Europe some countries tax any income above a certain amount. Then there are countries in which unofficial incomes cannot be taxed. It is better to call concerned authorities, being precise about the net income and your social " state" because some people have certain receivability of not being taxed legally.

  4. #4
    Legendry Member Michael Hodges's Avatar
    In the USA it will probably depend on how you report it. If you are using NADEX then it will be legitimate trading income, if you are using an offshore broker it could be considered gambling income. It also depends of course on where you live. the best thing is to go talk to your freindly neighborhood Accountant Man and see what he says.

  5. #5
    Rookie Member
    Thank you all for advices i had made some researches and in my country i have to pay a specific percentage from my profit until the end of this year ...the broker will send all the info....well... i guess that i will continue trading until nv-december
    I just can't believe how easy you can make money with this binary thing...i should quit my job )
    P.S. sorry for my bad English

  6. #6
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by newbie View Post
    Thank you all for advices i had made some researches and in my country i have to pay a specific percentage from my profit until the end of this year ...the broker will send all the info....well... i guess that i will continue trading until nv-december
    I just can't believe how easy you can make money with this binary thing...i should quit my job )
    P.S. sorry for my bad English
    Whoa there Cowboy! It's a little early to be quitting the old job there. Or even to be really thinking about it in more than as a goal. If you can successfully trade for an extended period without losing your ass then we can come back to that discussion. Until then congrats on the success you have now! Let us know what you are doing as far as trading, which broker are you using, what are good and bad things about it? We all want to know.

  7. #7
    Rookie Member
    thanks, Michael ...I am using traderxp as my broker and i like to make those 60 seconds "bets" EUR/USD with 10-20$...but it kinda sucks because it gives only like 70% return....after i withdraw all my money(takes forever), i will certainly chose another broker. when i started this binaryoptins thing I bought from internet a software that helps me do the 'bets' ...i thought that it was a scam (who would sell a working system and why ? ) but one of my friends showed me his results and i saw some youtube reviews and i risked...it works nice...im not winning as much money as i was promise on the software's webpage propaganda ..but it definatly helps making "extra-cash" .

  8. #8
    Solid Member luderalison's Avatar
    Hi Michael,

    I am an Indian expat living in Abu Dhabi, UAE.

    Well., You might laugh, at this stage of my game I haven't made any profits; only lost around 40% of my start up capital. But thru careful study, research and patience i am trying my best to recoup my loss and start making some profits.

    Now to the subject of the thread.., in UAE there is no tax system. However there are charges for bank transactions, and we pay for parking lots and so on. But if I withdraw some money to my bank account I have absolutely no idea if there will be any restriction or limitation. Anyway.., that's not gonna happen so soon. Might take few more months if my BO journey survives! (I know how hard is binary options).

    Although it looks little weird to ask you.., do you know anything about the middle-east systems regarding online trading, and brokers etc. I mean, you are in this industry for a long time you might have come across a trader form middle-east. Can I get any info like that or can you give me a reference to any trader from middle-east, from our forum or elsewhere if you have any.

    Regards
    Luder

  9. #9
    Administrator Martin Kay's Avatar
    More about binary options taxation for US based traders - http://www.binaryoptionsthatsuck.com...ng-with-taxes/

    @luderalison - wish I had anyway of answering this question. I think you should try forex forums or even casino forum (profits are profits after all, doesn't matter how toy make it ), you might find good information there.

  10. #10
    Senior Member grindtime's Avatar
    I'm just going to claim them as earned income.. Since the IRS has no clue who the offshore deposit was made from , they only see it on the banks side in the US , I can report it as earned income as if I was paid for working. Which in a sense I am.. This is better than reporting it as "Gambling wins" since gambling is illegal in many states unless it's done at a casino which would report it to the IRS.

    So if your a law abiding tax paying citizen .. You could just report your $150,000 in binary options profits paid from Titan Trade as "Earned Income" ... Or you could just withdraw it to Bitcoin and buy gold from overseas and have it shipped to your house. But I am not an expert on taxes and I doubt your local tax advisor would even be able to tell you what to do .lol If you live in the US anyways, since your making money with an unregulated broker , performing an activity which has yet to be classified as "anything" ... It can be reported as simply "earned income" in my opinion..

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