I have a FX account and I have put about $20,000 cash into the account. I have had about 4 losing years and last year my account started at about $5,000, a $15,000 loss in the account since I started. This year, my account has risen to $7,000, a $2,000 profit for the year, but still a loss in the account since I opened it. Would I need to pay tax on the $2,000 even though I haven't actually made any money? Please help me understand how losses roll from year to year. Thanks
Have you claimed losses in the previous years? If so, then you should have loss carry-overs to offset your gain from this year.