Hi Mr. Green,

I heard your podcast on traderinterviews.com. You mentioned the tax is on net position (start asset - ending asset). Does this mean we cannot withdrawal gains in between? And if we do, how do we keep track of that?

To summarize my understanding, sounds like we just tell ourselves to use form 6781, then report net position and just fill out section I of the form to determine the short and long term cap gains.

We then fill these on Schedule D, and if no other investments, we don't need to fill other parts of Section D. Then the result transfers into 1040.

Can you post an example Schedule D and form 6781? Thanks!