When calculating taxes for the year, what matters is your net gain or loss from trading activities. In your situation, you’ve realized a gain of 40K and a loss of 30K. When you offset your losses against your gains, your net profit is 10K. Yes, generally, you will be taxed on this net figure of 10K, as it represents your actual profit from day trading over that period.
However, it’s essential to be aware that tax rules can vary based on your location and personal circumstances. For instance, if you engage in frequent trading, the IRS in the United States may classify you as a “trader” for tax purposes, which can affect how your income and losses are treated. Also, any unutilized capital losses can generally be carried forward to offset future gains, although limits exist on how much loss can offset other types of income per year.
To ensure proper adherence to tax regulations, consider consulting a tax professional or accountant familiar with day trading and the tax laws pertinent to your country.
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