Forex

Hello I am new to this type of account and am trying to complete my tax return.. I have talked to the IRS and read books and seem to get conflicting information regarding the tax treatment of the forex account activity. I have a loss from my investment in this account. Where should I put this loss amount. Also, is it required that I list every transaction?

Forex is reported on line 21 (Other Income or Loss) of Form 1040 in summary form; that's ordinary gain or loss treatment. It's not subject to self employment tax.

If you elect out of IRC 988, you get the more tax-beneficial futures tax treatment - with 60/40 tax rates. The 60% is long term capital gains and the 40% is short term capital gains.