Let’s assume you buy a coin at an inflated price and it tanks. You sell it and take a loss:
Buy: $40k
Sell all at 50% of the price paid: $20k
Total loss so far: $20k
Assume you use that $20k to buy/sell the same coin in a volatile market to re-coup that loss buy buying (low) selling (high) until you are at a $10k gain.
Do you pay taxes simply on the “sum of all trades” that equate to the $10k gain (or any gain outside this situation) at the end of the year or do you have to tax each and every trade that allowed you to get out of the loss event in the first place.
If every trade is taxed, I can’t see how anyone could day trade and possibly have enough margin to make gains.
Thanks!