Tax day was not good for my portfolio. (THEORY) A couple of my stocks, and most of crypto saw a good sized selloff on Monday, everybody was like WTF? Then somebody tweeted out about taxes being due at Midnight. There was a lot of money made in the OTC at the end of last year and to quote a guy I follow on Twitter, "all these uninitiated traders are learning now." Turning and burning a stock exposes you to higher capital gains taxes. If you hold for longer than 1 year, the cap gains goes down, and I don't even want to hurt my brain thinking about the wash loss tax rule.
A 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.
www.forbes.com
$800,000 tax bill on $45,000 income