Crayola Coyote
Superstar
this is just fukked up, i can't even laugh at this
nah I think he knew what he was doing too
Robinhood trader made $45k trading now faces $800,000 tax bill
- Thread starter KingDanz
- Start date
nah I think he knew what he was doing too
Ozymandeas
Veteran
TurboTax shows changes live like a slot machine too. Dude was seeing that shyt just keep going and going in the red like
Turbo Tax:
theworldismine13
God Emperor of SOHH
subs
Tres Leches
Empire Business
You can't have 1.4M of capital gains income, but only 45k of profit, and have a tax bill of 800k. None of that math adds up or makes sense.
the losses are disallowed by the 'wash rule' thats why, the tax bill does seem high so the article is missing information but 1.4M x 37% ordinary income tax rate = 518k in taxes is possible
((ReFleXioN)) EteRNaL
RIP MR. SMOKE
This is a very particular case though. This guy was doing some crazy shyt. Even if you never hold and day trade full time you should NEVER owe more than you made. This guy was just doing some wild shyt thinking he was gaming the system. Article just seems like propaganda to scare away the retail investor because they're thriving right now. Most coli brehs don't even gotta worry about this unless you're doing the same dumb shyt this guy was doing. The only other time I've heard of people owing more than they made is when they took their profits into the next tax year and then lost it all. But they were still on the hook for their tax bill from the previous year.
Like if you made 500k in 2020. And your tax bill was 150k but you didn't set it aside. You just went into 2021 trading with that 500k. Then maybe in January 2021 the whole market crashed and your funds went from 500k to 100k. But now you're still on the hook for that 150k because it's a new year. If it's the same year you could write off that 400k loss. But you can't in a different year. That's why you should take out your tax money right when the year ends. You never know what could happen.
Like if you made 500k in 2020. And your tax bill was 150k but you didn't set it aside. You just went into 2021 trading with that 500k. Then maybe in January 2021 the whole market crashed and your funds went from 500k to 100k. But now you're still on the hook for that 150k because it's a new year. If it's the same year you could write off that 400k loss. But you can't in a different year. That's why you should take out your tax money right when the year ends. You never know what could happen.
BlackJesus
Spread science, save with coupons
Fake news. Anyone who knows the tax code knows you’re only taxed on profits not losses.
He needs to get a better accountant
This. And even they did tax him that amount all he would have to do is apply for an offer and compromise and the IRS will wipe out damn near the entire debt if your income is low enough.
King
The black man is always targeted.
What is this? Asking for a friend
Bboystyle
Bang Bang Packers gang!
Something is not adding up about this shyt.
Hes an idiot investor basically. He should of let someone handle his account or did Tax Loss Harvesting. Coli nikkas on here should learn from this.
What is this? Asking for a friend
If you owe the IRS and have low enough income
You can file for an “offer and compromise” where they will settle the debt to something you can afford.
Bboystyle
Bang Bang Packers gang!
Did u break any trading rules in the proccess? No? Ok then, thats why. This guy did
Bboystyle
Bang Bang Packers gang!
These two bozos can have a cheat sheet right in front of them and still fail the test
These two bozos can have a cheat sheet right in front of them and still fail the test
It's TLR breh, its expected
BlackJesus
Spread science, save with coupons
These two bozos can have a cheat sheet right in front of them and still fail the test
What nikka?
What are you even talking about weirdo? Stay on topic. nikka talking about failing a test