All these trades date back about 6 months ago.. Now, if i made 1,000 one day and lost it the next, do I have to pay taxes on the 1,000 that 1,000?
\ well a few years ago may not cut it, maybe it's best this is kept recent in case any recent tax laws apply.
What you are talking about has nothing to do with recent tax laws or even how you structure yourself, its basic capital gains/losses. If you have capital losses in one year that exceed $3k you can only deduct up to $3k against other ordinary income, the rest of the losses carry forward to the next tax year and can continue to do so indefinitely. Ex: If you had $10k in cap losses last year (and deducted $3k against income leaving you with $7k in carryforward losses) then if you made $15k in cap gains this year you can fully deduct the remaining $7k against the $15k in gains (you would only pay cap gains on the net $8k in this example) If you filed your tax return for 2006 and has capital losses >$3k then the fact that you have carryover losses should already be something you are aware of since its right there on the schedule. If this isnt what you are asking then please ignore - that is what I got from your original post but everyone else in this thread seems to be answering other questions so it has me confused. The only thing that matter is how you net out at the end of the year. If you make $1k on one trade and lose $1k on another trade in the same tax year then your capital gains for those two trades is zero.