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

[Busted_Toes]

I still don't get it

 

[Obreh Winfrey]

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

Dude can look forward to a 1099-L at the end of the year

 

[Ezekiel 25:17]

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

Yup. Robinhood is supposed to be a noob friendly, casual investment app. I don't blame folks who get lost, because the app make shyt look so easy.

People are laughing because of course they're basic lames who love to see people lose, but I don't blame the dude. Hopefully there's a way out of this, no way the average joe can handle $800,000 in taxes. Most folks barely save $1 million in their 60s.

 

[Ezekiel 25:17]

I think crypto brehs are safe

 

[MajesticLion]

Rigged game. If you're going to jump in, you'd better know how it's rigged beforehand.

 

[YouMadd?]

This is why I just trade forex and buy my one ETF twice a month .... I go the way of the turtle..... Nice and slow...... People trading stocks like they are clicking video game remotes making double digit trades in a day, imagine the stress of that trash style of trading....

If you cant journal every single one of your trades, you're doing too much....

 

[Standing on business]

45 million trades

 

[BigMoneyGrip]

Honestly he should have known about “the wash sale rule” that’s stock trading 101

 

[zayk35]

All in the game

 

[Busted_Toes]

45 million trades

this... where the full $45million come from

 

[Sonic Boom of the South]

He booked a profit but was disallowed all the losses because he never once waited the 30 days on those stocks to book the loss,” added Wruk.

 

[Busted_Toes]

He booked a profit but was disallowed all the losses because he never once waited the 30 days on those stocks to book the loss,” added Wruk.

I must be dumb. That sentence sounds like Spanish. What the fukk does that mean?

 

[ORDER_66]

I still don't get it

I think he went over the limit doing day trading now gotta pay the fees that added up???

 

[Sonic Boom of the South]

I must be dumb. That sentence sounds like Spanish. What the fukk does that mean?

U buy stocks and sell them within 30days avoiding a loss then buy them again when they dip and sell again before they drop

 

[desjardins]

similar happened to me years ago but it was only 14k
I ended up not owing anything after i did my paperwork correctly and showed that i actually lost money on all my transactions
i was just telling a 18yr old i know not to fukk with this shyt being a follower unless you actually do your own research
robinhood will send all your transactions to the IRS and it's up to you to prove that you didn't make money and don't owe bread