Cryptocurrency Scarface
Coinbased
fukk the IRS
Robinhood trader made $45k trading now faces $800,000 tax bill
- Thread starter KingDanz
- Start date
Transact $45 million worth of trades but don’t know about taxes brehs
Fillerguy
Veteran
Of course it does. Everything is going as it was designed to go. The market isnt for retail investors.Something is not adding up about this shyt.
This. But also, you gotta know the rules before you jump in the deep end.
nikka SOMETHING??Something is not adding up about this shyt.
He traded a lot of popular stocks, I’m guessing GameStop, AMC, etc., while they were rising exponentially. The IRS rule says you can’t sell your stock at a loss and then immediately buy it again and still record the loss on your taxes.
Basically, if you bought 1 stock for $100 on January 1, sold that same stock on February 15 for $80, and then bought that same stock again at $60 on February 20th, you cannot record the $20 loss on February 15th on your taxes. Your cost basis goes back to $80.
This kid just bought and sold a lot, thinking he was making a lot of money, but didn’t think about the tax impact.
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humminbird
Veteran
you get a 1099 b at the end of the year when you trade
there's a column for proceeds
then cost basis
usually, you get the total capital gains by subtracting the proceeds by the cost basis
so in his case, he thought he got 45,000 because his difference is probably that number
but there's a wash sale rule which says you can't subtract a certain number of losses to the captain gains and therefore it counts towards your capital gains
so in his case, he made 45,000 by getting the difference but then his wash sale disallowed is probably 1 million dollars meaning he has to add 1 million to his captain gains and his income for the year
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Spot em.... got emmmm!!!!
OnFleekTing
Superstar
robinhood needs to really have different levels for people
their needs to be an amateur mode for people like this who just want to buy stocks and sell at profit
they aren't thinking about the capital gains tax or how your losses have to be claimed
another financial implosion from robinhood. bankruptcy will make it all better though ain't no way he has that money for the tax bill
their needs to be an amateur mode for people like this who just want to buy stocks and sell at profit
they aren't thinking about the capital gains tax or how your losses have to be claimed
another financial implosion from robinhood. bankruptcy will make it all better though ain't no way he has that money for the tax bill
I didnt even know you could do what he did...
shyt sounded reckless off the bat...Yep.Something is not adding up about this shyt.
kevin arnold
Superstar
Why doesn’t Robin Hood automatically have a built in feature that stops shyt like that, like E Trade
humminbird
Veteran
The limit for day trading is 25k since he put in 30 they let him go crazy