: Tax treatment of a boxed trade? Say I'm long IBM with Schwab, but today, i want to trade it intraday, in fact I want to short it and cover it later. With most brokerages, you can't be "boxed" (long and short the same stock

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Here's how capital gains are totaled:

Long and Short Term. Capital gains and losses are either long-term or
short-term. It depends on how long the taxpayer holds the property. If
the taxpayer holds it for one year or less, the gain or loss is
short-term.

Net Capital Gain. If a taxpayer’s long-term gains are more than their
long-term losses, the difference between the two is a net long-term
capital gain. If the net long-term capital gain is more than the net
short-term capital loss, the taxpayer has a net capital gain.

So your net long-term gains (from all investments, through all brokers) are offset by any net short-term loss. Short term gains are taxed separately at a higher rate.

I'm trying to avoid realizing a long term capital gain, but at the same time trade the stock.

If you close in the next year, one of two things will happen - either the stock will go down, and you'll have short-term gains on the short, or the stock will go up, and you'll have short-term losses on the short that will offset the gains on the stock. So I don;t see how it reduces your tax liability. At best it defers it.