Hey there everyone, I’m a bit new to forex, and have been profitable thus far, taking a 1k account to 6.4k this year. Will be my first year filling forex tax claims, and I have a question I can’t find an answer to anywhere when it comes to the treatment of U.S. taxes on forex capital gains.
I’m wondering, do we pay tax on each trade that is a capital gain, or simply the end capital gain balance at the end of the year? This has me a little stressed out, because losses are a natural part of forex, and I’m wondering, say, if I make a trade and win(capital gain), and then make another and lose it all, do I still owe tax for the first capital gain? Or is it off set by the loss?
I hope I’m making sense, and would appreciate anyone responding who has the patience to explain this to a new guy. Thanks ya’ll!