Robinhood trader made $45k trading now faces $800,000 tax bill

[CrimsonTider]

Even if he netted 1.4m, he wouldnt owe 800k in taxes though so I still dont get it. The most you can pay in capital gains is 20% correct?

why don’t you dummies read the article

 

[Still Benefited]

Even if he netted 1.4m, he wouldnt owe 800k in taxes though so I still dont get it. The most you can pay in capital gains is 20% correct?

Yeah thats true,I don't know maybe its tricky because he traded with so much margin
I've always been scared to use it and hear you should stay away.
Not sure how that would impact this.

 

[NkrumahWasRight Is Wrong]

It's not day trading necessarily

Its trading before settlement

 

[Depreciating Asset]

Why doesn’t Robin Hood automatically have a built in feature that stops shyt like that, like E Trade

Exactly

 

[The Mad Titan]

Imagine dudes reaction when he hit submit on turbo tax and that shyt popped up on his screen

 

[Wiseborn]

Don't understand captital gains taxes brehs.

You pay taxes when you sell a stock, constant buying and selling while making you money quickly means that you owe taxes.

That's why the average retail investor buys and holds If you hold a stock for two years your taxes go down dramatically.

 

[Wiseborn]

robinhood needs a easymode

It does, It's called Buy and Hold. That being said Robinhood does encourage option trading way too easily and people stupidly get into that game not knowing what they're doing.

Huge Hedge funds with the world's best information and tools get burned all the time. A huge hedge fund went belly up last week luckily the market reacted well. I remember how one Hedge fund failed and caused markets in Asia to tank.

 

[FaTaL]

Yall nikkaz believe everything read, fake ass forbe net worth statements and now this bullshyt

even it were true, he wouldn't have to pay because he doesn't have the money, the IRS will label him unable to pay

I know because I purposely filed taxes so I could income I didn't make just to get a loan, and owed the IRS hundreds and thousands of dollars in taxes more so because of penalties

I never paid a dime

There's a document called an offer in compromise you can file to get out of any tax debt, but you don't even have to do that

I ignored them the entire time and let penalties rack up, and eventually they put out a benchmark warrant for my arrest, the US marshalls came to my house first, then IRS agents before that, I was out of town when they issued the warrant

All I did was came to their headquarters and told them I was broke, they could easily see I didn't have the money to pay the shyt, and that was that, the leins and everything were taking off my bank accounts, and I was label unable to pay

you nikkaz worry about shyt too much

only people who need to be afraid of the IRS are people with money who acting like they don't have it, they can't get you for tax evasion if you don't have the money lmao how you, if you don't have the money you're not evading

What? Why didn’t they go after your paycheck?

 

[FaTaL]

Good thing i only sell at a loss

Cat

• FaTaL
• Dec 12, 2015

 

[Icantspell]

Good thing i only sell at a loss

felt

 

[Secure Da Bag]

Something is not adding up about this shyt.

You can't have 1.4M of capital gains income, but only 45k of profit, and have a tax bill of 800k. None of that math adds up or makes sense.

 

[TELL ME YA CHEESIN FAM?]

This is some of the worst advice I've seen about taxes
An offer in compromise is legit - but the rest of this

nikka got the Hall Of Shame banner for a reason

 

[CrimsonTider]

You can't have 1.4M of capital gains income, but only 45k of profit, and have a tax bill of 800k. None of that math adds up or makes sense.

read the fukking article

 

[Crayola Coyote]

Someone explain it to me like I'm 5. Where did he get 45million?

seriously. Like 45 million is something you can get on eBay

 

[Crayola Coyote]

I still don't get it

this thread