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

[Seoul Gleou]

$45m worth of trades?!

wth was breh thinking

 

[jdubnyce]

$45m worth of trades?!

wth was breh thinking

He wasn't

 

[ryderldb]

He wasn't

just swipe up to confirm the trade breh!

 

[Tasha And]

He recently received his 1099-B and input it into Turbo Tax and to his chagrin, he had $1.4M in capital gain income and a tax bill of just over $800k.

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

 

[BukowCrow]

He was trading $200k-$2 million day. Even if some coli users have accidentally wash traded here and there, they’ll be fine.

but stories like this is why I’ll never day trade. Also don’t have the energy to look for scalps while working a full time job

 

[Brehcepticon]

Generational debt

 

[CarltonJunior]

I didnt know anything about this

“Invest your money brehs”

 

[((ReFleXioN)) EteRNaL]

Since crypto is considered property the Crypto brehs ain't gotta worry about this




For now

 

[Kornball The Conqueror]

Good thing i only sell at a loss

 

[CrimsonTider]

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.

This Isn’t an average Joe with that type of trading activity and capital at risk

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.

 

[Kuro]

how do you owe 800k in taxes on 1.4m in capital gains?...they saying his net profit of 45k is the same as a 1.4m capital gains income????...this story is fishy...

 

[Human Torch]

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

I’m dead. But I feel you, my shyt was the same thing last year.

 

[mannyrs13]

Does this apply when day trading bitcoin also?

With the way the government tryna control everything, I wouldn't be surprised if it does or will in the near future. You are taxed when you sell crypto and when you convert it to another coin so who knows how they'll get your ass when tax time comes around. Best to buy, hold, and hope the price keeps going up.

 

[Kings County]

this cant be true, i had a high volume of trades, made more than 45k and dont have to pay 800k

 

[smitty22]

Got his tax notice and immediately