Gains - Losses - Commission ------------------- Net Gains <------ Is this what you have to pay taxes on? This is the way I thought it was, but I don't know. I'd appreciate any reply.
I would like to hear from someone who has gone through this taxing process as a trader because the source is confusing as hell. Could someone with experience in doing taxes after being a trader please answer this for me? Thanks.
Yes, you are correct. In the U.S., if trading a non-IRA account, you will pay taxes on your net gains. This is your gains minus your losses (minus your commissions and fees, if not already deducted from your gains and losses). Another way to look at it, is that you pay taxes on the amount that your account has increased in value (adjusted for any new deposits or withdrawals in the account).