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

[Ethnic Vagina Finder]

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

He kept buying and selling the same stocks over and over and over again. If anything, they should put a warning or disclaimer explaining the ramifications.

 

[King Kai]

this is just fukked up, i can't even laugh at this

 

[GunRanger]

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

There is. Robinhood tells you in the app about wash sales and younarent allowed to buy andnsell the same stock in the same day more than 4 times without being designated a day trader

 

[Mindfield333]

I know a lot of coli traders are clutching their pearls right about now lol.

And they should. The Wash Rule can get you. I guarantee most aren’t that familiar with it.

 

[King Frost]

trading stocks is a big boy game

stupid apps like RH made no experience nikkas think they can act like a hedge fund

drop some funds in s&p 500 then leave it alone...forever.

 

[You Win Perfect]

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

nah ya'll just need to stop being lazy and read the trading rules and tax laws.

 

[rlg]

Didn't read the whole thread but this cold have been avoided trading in an ira.

 

[old pig]

fukk the IRS

this and only this...actually add the SEC too

 

[old pig]

I think crypto brehs are safe

 

[Godless Socialist CEO]

Don't read tax law, brehs.

That's the thing, this is from investopedia. There's quite literally no guideline on what's similar and what isn't.

How do I know if a security is “substantially identical”?
Unfortunately, the IRS does not provide specific guidance on how to know whether a particular security is “substantially identical” to another. Therefore, investors must rely on their own judgment and the advice of professionals. In some cases, the answer can be obvious: selling shares in one company and then buying that same company’s shares within 30 days of the sale would naturally violate the Wash-Sale Rule.

 

[Standing on business]

I think crypto brehs are safe

Nope

 

[KidJSoul]

So basically... don't day trade the same stocks like a motherfukker?

 

[Master Teacher]

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

 

[Ozymandeas]

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

 

[Chrishaune]

YEP



and he probably spent half of that $45,000