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

[Field Marshall Bradley]

Of course it does. Everything is going as it was designed to go. The market isnt for retail investors.

What’s a retail investor?

 

[Master Teacher]

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.

Still doesn't make since

because if the stocks went back up and brought them at a lower price he will actually made the money when they went up

they not telling the whole story

he had to cash out some of those profits eventually to in order to make the income

so on paper his gains for the year are 45,000 but how many times did he transfer profits into is bank account over the course of the year

once you sell and buy back in, you start all over for position so he could've made a lot of money got the trade and started over, and didn't make shyt else for the rest of the year until he came back in green at 45k

 

[Master Teacher]

First line in the article is TRADER MAY FACE

MAY
MAY

It's not gonna happen, yall nikkaz can't read or comprehend English, forbes is full of shyt 90 percent of the time

people fear taxes for no reason

 

[MidniteJay]

I still don't get it

It's why I usually stay out of stock trading threads.

Have me like:

 

[BushidoBrown]

Transact $45 million worth of trades but don’t know about taxes brehs

Darwin smiling down on these simpletons

 

[levitate]

That’s why I only buy and hold for the long term.



fukk all that day trading shyt. You not built like that.

 

[Dwolf]

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

 

[NaijaProdigy Redux]

If you don’t know what you’re doing start with ETFs like VTI and VOO and read a lot.

So many newbies are in for a sticker shock when they file their taxes because of short term capital gains and the washed sale rule.

A lot of people probably didn’t even put aside their estimated tax bill on realized gains so now there’s a liquidity issue

 

[klientel]

I thought RH blocked day trades....either way thats awful!

 

[BushidoBrown]

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

this.

 

[Rev Leon Lonnie Love]

this. i dont feel sorry for no privileged cac taking a major L. his privilege will bail him out

 

[Umoja]

I doubt he will have to pay anything providing he can show a loss. I imagine the limitations are set up to avoid exploiting some gap for tax evasion.

Should be fine if he demonstrates his actual gain. Suspect they'll put the squeeze on him still. Imagine they will want to create a sizeable amount of fear in response to recent events.

 

[Mr swag]

Robinhood needs more safety. People on it don’t know what they are doing

 

[old pig]

bruh I’m CRYING!

I salute his honesty tho if he’s on the level

 

[cobra]

I think crypto brehs are safe

If your exchange is KYC, then you are not safe