Taxes – Forex Losses in an LLC that conducts other business?
Hi, I have an LLC that performs 2 primary activities:
1) Consulting/Software Development Work
2) Automated Forex (currency) trading
Lets say (for example) that I made ,000 doing the Consulting work and LOST ,000 doing the Forex Trading.
Can I fully write-off that ,000 loss and only pay taxes on the ,000 net? If so, what documentation do I need and where do I put it on my tax form?
Thanks!!
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Tagged with: consulting software development • currency trading • Development • forex trading • Lets • loss • software • software development work • tax form • work
Filed under: Forex Software
The tax code doesn’t let you mix these. Your business is clearly the software development work. You had income here and when you had contracts you actually worked on them.
Your losing hobby was the forex trading. Most likely these will fall under 1256 rules and be entered on schedule D and limited to $3000 of loss against other income.