Robinhood Trader May Face $800,000 Tax Bill

to Joe Mecane of Citadel. This is up from 10 percent in 2019 and is a result of lower barriers to entry for casual traders, including a strategy by many brokerages to eliminate trading fees. While the wash sale rule is meant to prevent taxpayers from taking advantage of stock losses, it is easily overlooked by many newbie investors. With so many more new traders using platforms like Robinhood,“could pose a problem for novices who spent 2020 trading in and out of the same few stocks.

While you can’t use the loss to offset gains in a given year, the loss gets added to the cost basis of the new investment you made. “In the long run, there may be an upside to a higher cost basis—you may be able to realize a bigger loss when you sell your new investment or, if it goes up and you sell, you may owe less on the gain,”

Fidelity. However, given that you cannot offset a realized gain in a specific year, you would still need to cough up money to cover taxes; for the Robinhood investor, that means $800,000.Robinhood, one of the most popular investing apps and a pioneer in free trades, has captured the limelight several times in the past year. Most recently, it was the platform of choice for traders following the WallStreetBets message board on Reddit to drive up the price of GameStop.

Its user experience has also led to criticism. “Technology can make investing easy and fun. It can also downplay risk in ways that may lead novices astray,”Jason Zweig, author of The Intelligent Investor column at The Wall Street Journal. “Robinhood may encourage risky behaviors that could backfire,” he added.

Being blindsided by a humongous tax bill is one thing, but Robinhood’s gamified approach has also led to tragic outcomes, like the case of Alexander E. Kearns. The 20-year-old student at the University of Nebraska died by suicide afterWruk, the financial planner, thinks ignorance of important regulations “may be the next way in what is to come with these DIY traders.

Source: Digital Coin News (digitalcoinnews.net)

Hahahahahahahahaha. Hope he save some tendies

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This just in: regular people should leave making money to the rich because taxes

thanks

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Robinhood Trader May Face $800,000 Tax BillA Robinhood newbie is facing a potential tax bill of $800,000 despite only making $45,000 in net trading profits. The case should serve as a loud warning for the new crop of do-it-yourself investors. Why is this news? Tax is theft straight up GRDecter I have no doubt there will be countless young investors tripped up on the wash-sale rule - especially day traders. They would have no idea it even exists. This also applies in Canada. Why I do my short-term trading within registered accounts.
Source: Forbes - 🏆 394. / 53 Read more »

Robinhood Trader May Face $800,000 Tax BillA Robinhood newbie is facing a potential tax bill of $800,000 despite only making $45,000 in net trading profits. The case should serve as a loud warning for the new crop of do-it-yourself investors. thank you very much for your work What’s $800,000 to a whale? That’s a great problem to have
Source: Forbes - 🏆 394. / 53 Read more »

Robinhood Trader May Face $800,000 Tax BillA Robinhood newbie is facing a potential tax bill of $800,000 despite only making $45,000 in net trading profits. The case should serve as a loud warning for the new crop of do-it-yourself investors. The best choice I've made this year was investing in cryptocurrency and forex trading and earning from home. With the help of Kellybrian_ I've been earning $ 23k weekly I've never regretted this decision. 🙏🏻🙏🏻 For all those who are new to this working from home Bitcoin trading options Here's a little tip: Get a trusted Bitcoin expert and stick to him Blaketeddy56 Invest and play at similar times each day. Because : In times of chaos, your investment is your anchor to success⚖️
Source: Forbes - 🏆 394. / 53 Read more »

Robinhood Trader May Face $800,000 Tax BillA Robinhood newbie is facing a potential tax bill of $800,000 despite only making $45,000 in net trading profits. The case should serve as a loud warning for the new crop of do-it-yourself investors. great! Pay up, Joe needs your money for his illegal kids, remember Jerry's kids? These are Joe's kids. More fake news to make people think about selling AMC and GME Morgan Stanley paid $13 billion for E-Trade Toledo city council approved $800,000 What's forth the terrorism Flat tax 10% Texas
Source: Forbes - 🏆 394. / 53 Read more »

Robinhood Trader May Face $800,000 Tax BillA Robinhood newbie is facing a potential tax bill of $800,000 despite only making $45,000 in net trading profits. The case should serve as a loud warning for the new crop of do-it-yourself investors. Do you think this is what people really need right now? ziv_shahar How on earth can he be taxed $800K... Are his profits $2.4 Million? If Forbes also start sensationalizing article then its meaningless...
Source: Forbes - 🏆 394. / 53 Read more »