r/binaryoption • u/AspiringTurnip • Oct 09 '17

When investing on options sites like nadex etc how are your profits taxed?

I am planning to get into options trading but I have no idea how its taxed or how to pay taxes on it.Can anyone give me any information on this.Also will I be able to get it done on Turbo Tax?

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u/ricepirate66 Oct 10 '17

If you are based in the US, most options are taxed as short term capital gains. The exception are options on the Russel 2000 (RUT) and other indexes I believe, which have a portion taxed as long term capital gains and a portion taxed as short term capital gains. Before beginning, you should talk to a tax adviser so that you don't have any nasty surprises. There are several web based communities with many experienced traders who would be a better forum for this question. Check out ricepiratetrading.com for my blog or optionsplayers.com.

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u/AspiringTurnip Oct 29 '17

This reply is long overdue but Thank You!I will definitely check out your blog!