if you are long 1000 shares of MSFT. this is your long term investment. But you also day trade MSFT, in and out in and out, but go flat @ the end of the day, so you are always 1000 shares long MSFT @ the end of the day. so you know if you had bought 1000 shares of a stock and then sell it 30 years later you only have to pay taxes at the end of 30 years... would I have to pay taxes each year in my scenario??
Nice try Chris. You have to pay tax on any realized gain at the end of the year. Also dont forget Pattern day trader rule, wash sale rule, plus the non trader designation on your 1099 limiting your losses to 3k/year carryover for all stocks, not just one. All of which would impact your tax considerations. Lots more rules. Can you say "flat tax" Consult a professional once you are consistently profitable to maximize your tax advantages via trading.