Reducing Modified Adjusted Gross Income in Forex Trading
brokers
Reducing your modified adjusted gross income (MAGI) is an effective way for forex brokers to mitigate their tax liability. To do this, forex brokers should consider taking advantage of certain deductions and adjustments, such as the foreign earned income exclusion, the foreign housing exclusion and deductible tax expenses. Additionally, brokers should investigate setting up a retirement account, such as an IRA, to reduce their MAGI and take advantage of tax-deferred growth. Finally, forex brokers may want to investigate deferring income and gains to a later tax year as another way to reduce their MAGI and save money on taxes.