In just five days, GameStop’s shares soared up to 500%. WSJ analyzed how Reddit posts, YouTube videos and tweets by personalities including Elon Musk spread online and fueled a trading craze that turned Wall Street upside down. Photo illustration: George Downs/WSJJoseph Holler started day-trading stocks last July when he was stuck at home during the pandemic and his work slowed down.
“It was fun and exciting. I enjoyed it,” says Mr. Holler, a 38-year-old telecom salesman who lives near Huntsville, Ala., with his wife and their five children. Using several no-commission online brokers, he sometimes made more than 200 trades a day and thousands in 2020, according to brokerage records he provided. Overall, he says, he’s ahead by more than $8,000.
Now this fun will be put to the test by Uncle Sam: This week Mr. Holler received his first tax document, a 1099 form detailing a small portion of his trades. It’s 34 pages long. “It’s so convoluted, I have no idea what it means,” says Mr. Holler, who has always prepared his own taxes using software. With hundreds more pages of records coming, he thinks he’ll need to hire a professional preparer this year.
Mr. Holler will have plenty of company soon. The brokerage industry added over 10 million new retail accounts in 2020, a record year, according to analyst Devin Ryan of JMP Securities.
By the time taxman comes there will be nothing to tax anymore
Very patronizing, prejudice of Robinhood traders . I suppose paying taxes isn’t a bad thing if they made $$. The worst to worry about is that they have a net loss greater than $3k.
Great time to ask trump how he’s evaded paying taxes all these years.
Liz Warren will want to forgive taxes on people who didn't know that taxable income gets taxed.
Nothing, they don’t make any money so it’s ok.
Bc Taxman’s too poor to go after Wall Street 😂 I’ve been told
Reminder that the US federal government gave PPP loans to the Catholic church, who used them to settle civil cases stemming from the abuse and trafficking of kids. Remember this when determining what you're gonna claim as income. It's not fraud if you miscalculate on accident.
I think robinhood should be afraid that the lawsuits are coming
They probably will all lose it all on the next trade.... They are going full throttle stock to stock expecting 100% or bust, this will not end well.
Always
Sounds like a threat.
It's fine; Most of them will be posting losses anyhow.
Ha! Right?! They probably haven't thought much about this...
It looks like the trader is going to shank the taxman. I do not believe this is recommended. Throw their tea in the nearest body of water. That should keep them away.
Sure. Make fun of the small investor. Asswipe of a paper.
it will be nice to see the 'share the wealth' millennials get a tax bill for the first time.
STFU
Not if you lost it all 😎
if they have any 'profit'
Might want to offer similar advise the the bitcoin sellers.
🤦🏻♂️🤭
Yes the government takes 25% of your winnings and gives it right back to financial institutions stimulus taxbreaks And caps your loss ride-offs at $3000 per year. Yes, we get it. The system is rigged. And water is wet. Any other old news you would like to share?
So is the SEC
He came last year. Is this supposed to scare people? The good thing about Robinhood is they have all your papers and trades done and send you your forms which you can transfer easily to do your taxes.
Pretty condescending article, but thanks for pointing out the obvious under the guise of snark
Oh wow! I learnt something new!! I have a question though, do you like to be an asshole or are you one already?
Forget taxes! Stop dreaming about redistribution through tax, you will be accused of stealing the rich. Philanthropy by billionaires is the only way to save capitalism from its meanness.
Capital gains tax don't just impact meme stonk traders... Biden is just going to create more of a burden for individuals investing in the growth of American enterprises.
trading stox w/ robbing’s hoodlum i fought the hedge and the fund won i needed money 'cause i had none i fought the hedge and the fund won
Where can I learn to avoid taxes
Trump ,ekonomide yapacakları küresel sermayeyi korkuttuğundan dolayı ,hileli seçimle egale edildi
Me to my 21 yr old-you know you have to report that on your taxes right? Him- no. 😅
Easy. Do not cash out until after a year passes after making your initial investment. Easy.
Breaking News: he comes every year
DoNotTellThem
They are already going up.
If frequent trading makes up the majority of your income, you get the tax benefit of filing as a trader (self-employed business); lower taxes, write-off all your losses, etc. 🙂👍
I don't understand the Wesley Snipes out there. Why not just file and pay your damned taxes? It's not that hard, especially if you just gambled on Gamestop or crypto mania. It's one thing if you're trading complex instruments. It's another to buy and sell XYZ. Pay the damned tax.
WhatAbout those who bought and sold GameStop shares in a taxfree growth RothIRA?
just fuckin hire someone to do it with the life savings you put in
It depends. Are they day traders? Was it L/T? Do they have other business losses, carryforward losses?
For now we dig
I don't like your tone.
I only lose money so I think I'm good.
Fugitive murderer with Phoenix, Arizona Police background refuses to associate with fugitive Maricopa County, Arizona Sheriff's deputies in Zihuatanejo, Guerrero, Mexico, has had respectable fishing business there for over a decade, own local bank account.
Not for the rich they aren’t.
A warning for Wall Street: Robinhood traders didn't get their investment education at Trump University.
I think people are more worried the market is heavily manipulated by a handful of individuals who's main focus is to steal from the poor.
I think I found an early video of the much younger Robinhood CEO investsmart - just go to lasvegas instead.
Forget taxes! Stop dreaming about redistribution through tax, you will be accused of stealing the rich.
This isn't a bit condescending.
Unless they didn't make any money cos they got scammed
We should expect no less from a despot that has turned DC into a militarized zone with thousands of foot soldiers, 10-foot-high fencing and razor wire, reminiscent of East Berlin under the USSR. Biden has formed DC into a vision of third-world dictatorship.
10 million people learning how tax policies favor the rich & idle wealth is a very good thing. I learned the same/made more money doing much less productive, real work. 15% LTCG taxes for holding paper for 13 months! No payroll taxes on stock market winnings! ExpandedMedicaid!
Tax?
Why use a photo of someone doing research if you’re talking about Robinhood traders ?
Blatant propaganda trying to scare millions of folk entering the markets. The big guys are starting to realise that the little guys are now entering their capitalist game.
$DOGE! No taxes on the moon boi DOGE dogecointo1dollar DogecoinToTheMoon BUYANDHOLD
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