Stock Market

Handymans342

My wife who is an EA with the IRS told me that the IRS is going start cracking down on Day Traders. @boatman37

randy56

E-trade issues a 1099 , I'm sure some have figured how to skate around taxes.

boatman37

Handymans342 said:

My wife who is an EA with the IRS told me that the IRS is going start cracking down on Day Traders. @boatman37

Not sure how much more they can crack down. We already get raked over the coals on taxes. I have heard that they are considering 50% tax. And on top of that something that sounds extremely illegal they are considering taxing the 'potential' gain and not actual gain. So if I was up $1000 but only sold for $200 then I pay tax on that $1000 even though I didn't make that. If that is the case then if I'm down $1000 but end up selling for $500 profit then I should be able to deduct that $1000 loss. It works both ways. Definitely sounds illegal to me. Similar to buying a house for $100,000 then 3 years later it's worth $300,000 but I sell it a year after that for $200,000. Now they are going to make me pay tax on the 'potential' $300,000?

If they hit day traders too much it will really hurt the market. I know we are small fish but look at what those 'small fish' did to GME. Alot of passive day traders will pull their money from the market and go somewhere else. That will really hurt the market. On top of that where do you think these millions come from that Schwab, T Rowe, etc make? Easy pickins' taking it from day traders that don't know what they are doing. Those guys will be gone and now they will have to battle each other. It's a 0 sum game so one of them will have to lose.

Aqua_Aura

I think I heard it was unrealized gains they want to tax not potential gains. So if you're up on a stock say $500 and didn't sell you would owe taxes on the $500 but I think this would be looked at overall for the year. 

Chances of any of that happening seem pretty slim but you never know. 🤞 Please don't let this send this topic off the rails. 

J3ff

Sold most of my losers at break even as they were going down... Tomorrow it's about GME and to a lesser extent AMC.. It's time for this to be done with!!! Cmon GME/AMC, I need a new set of tires for my car and a new boat! 

Handymans342

Also, if you bought any marijuana stocks you pay tax on the entire purchase and not just the gains

randy56

Sold some thursday, looking to buy today, in this dip, BOSS and SNE

MarkB

boatman37 said:

Handymans342 said:

My wife who is an EA with the IRS told me that the IRS is going start cracking down on Day Traders. @boatman37

Not sure how much more they can crack down. We already get raked over the coals on taxes. I have heard that they are considering 50% tax. And on top of that something that sounds extremely illegal they are considering taxing the 'potential' gain and not actual gain. So if I was up $1000 but only sold for $200 then I pay tax on that $1000 even though I didn't make that. If that is the case then if I'm down $1000 but end up selling for $500 profit then I should be able to deduct that $1000 loss. It works both ways. Definitely sounds illegal to me. Similar to buying a house for $100,000 then 3 years later it's worth $300,000 but I sell it a year after that for $200,000. Now they are going to make me pay tax on the 'potential' $300,000?

If they hit day traders too much it will really hurt the market. I know we are small fish but look at what those 'small fish' did to GME. Alot of passive day traders will pull their money from the market and go somewhere else. That will really hurt the market. On top of that where do you think these millions come from that Schwab, T Rowe, etc make? Easy pickins' taking it from day traders that don't know what they are doing. Those guys will be gone and now they will have to battle each other. It's a 0 sum game so one of them will have to lose.

This is the government we are talking about. Do you really think they care about what is fair?

Here the tax man wants me to estimate my dividends for the year ... ESTIMATE ... like how am I supposed to figure that out?? Then I have to pay taxes in 4 installments on the ESTIMATED dividends, BEFORE I get the DIVIDENDS ... and if I don't ESTIMATE it right, and underpay the instalments every quarter on my guess of what the total annual tax should be for those dividends ... they CHARGE me interest on late payment. LOL.  So, here I am paying tax installments on income I haven't even received, and don't even know what it is ... and if I under pay it ... (even though I paid the taxes before I received the income), I get penalized!!! And get this ... some how I have to come up with the CASH to pay the taxes on INCOME I haven't even received yet!  They expect me to borrow money based on my guess of what the DIVIDEND will be to pay the taxes in advanced. 

Here's the example ... main DIVIDEND comes early November ... let's say it's a nice $100k payment ... firstly I have to in the prior January/Feb of that year estimate how the company will perform, and what that dividend will be, then estimate what the annual taxes will be on the $100k dividend ... and because they nail us here ... I estimate it's going to be around $45k.  They then expect me to make equal installment payments in April, June, Oct and Dec ... so $11.25k each quarter.  Basically, I do not have the dividend in my account until Nov ... so I have to borrow $11.25k on April, June and Oct ... so pay $33.75k in taxes BEFORE I receive my dividend in November (which means I have to borrow the money, because I don't have the cashflow to pay the taxes) ... for an amount which I really don't know what it's going to be.  If it's higher than I've estimated, I will get penalized for not paying enough installment taxes (late penalty charge on difference in tax owing for each of those installments). If I've estimated too high, and paid too much tax in April, June, Oct ... I have to wait until April the next year to get my money back.

Welcome to Canada ... it's absurdity at its best, and apparently CRA thinks it is perfectly fair. I've objective twice, asking them how it is possible to owe taxes on any income that has not been realized (it is nothing but a dream up until they make the dividend announcement) and they've simply said ... sorry, it's the law.

Handymans342

@MarkB. Just pay the penalty

YYZRC

If I had a $100k quarterly dividend in perpetuity, I would retire and I would happily spend my time calculating my future dividend revenue for CRA!!

J3ff

GME up 25 bucks/share!! lol 

Dream_Inn

I did quite a bit of buying today on these dips for long term.  I was even able to get some high dividend (10%+) stocks for cheap today.  Good day to not look short term, but buy to be happy with in a year from now!

halifax212

Governments are broke. They will be deploying extra resources in the coming months so get ready for increases across the board.  

Dream_Inn

Wow, market sure did change by end of the day!  I got extremely lucky buying many stocks in the morning on the best prices for the year.  I also trickled another 10% of retirement back in on the dips this week (something I had never messed with till last year, and won't mess with again once I get what I desire back in, except rebalancing once in a while).

randy56

@MarkB That's tough, How much is the penalty? worth the trouble?

stocks
I did get the buy on BOSS EFT, but my SNE did not fill as I was in the boat all day.
I'm back in the green today, much better today, I'm up.

Handymans342

J3ff said:

GME up 25 bucks/share!! lol 

Not

boatman37

I sold my LYFT calls today for about 50% profit. Bought them about 2 weeks ago. Bought May PLTR $30 calls today too. Starter position and will add when I see fit. Also bought 1 AAPL July $150 call and will add to that as I see fit. Problem is I had sold some losers earlier in the week so was red for the week overall (only by about $150). Decided I didn't want to have a red week so bought TSLA calls and it started pulling back. Paid $3030 and sold for about $2700. About 15 minutes later it was up over $3800...ugh. So I ended up making my week worse. I will get it back so not worried but it sucks. Got too greedy about a red week. Should have just left well enough alone

J3ff

J3ff said:

Sold most of my losers at break even as they were going down... Tomorrow it's about GME and to a lesser extent AMC.. It's time for this to be done with!!! Cmon GME/AMC, I need a new set of tires for my car and a new boat! 

Sorry, what did I say?? GME was the clear winner today. Everything red, but GME was peaking for the last 7 days today at 150

Handymans342

I see GME at 138

J3ff

Sure, but if you watched it closely and bailed at 150 you made $$$$  

randy56

@MarkB In the US the penalty for not paying Quarterly tax is 1% so if you made $100k the cost would only be $1000. That is still enough to PI$$ a guy off. And you still have to pay the tax. 

randy56

Been watching AQMS, small company with a future. Do your own due diligence.

MarkB

YYZRC said:

If I had a $100k quarterly dividend in perpetuity, I would retire and I would happily spend my time calculating my future dividend revenue for CRA!!

$100 dividend or $100k dividend, it doesn't matter, still wrong to take taxes on income not realized. They are doing this to EVERYONE ... and it hurts the low income earners the most! It is WRONG.

MarkB

randy56 said:

@MarkB That's tough, How much is the penalty? worth the trouble?

stocks
I did get the buy on BOSS EFT, but my SNE did not fill as I was in the boat all day.
I'm back in the green today, much better today, I'm up.

It's not worth the trouble, you just pay it. They charge you interest on the difference (what you should have paid vs. what you did pay). The penalty isn't the issue.  That's like only 1% (although it irks me!) ... the issue is cashflow ... I used those high dividend values to shock everyone ... but the point is if you only GET the dividend in your account in Nov ... how do you come up with 35% of it to send to CRA in June??? Where does that money come from ... even if it is a $5k dividend you get in NOV, where does $2k come from in June ... you have to BORROW money to pay the taxes ... is that right?

randy56

No it's theft .

J3ff

GME GME GME up 50+ dollars a share today! 

Dream_Inn

J3ff said:

GME GME GME up 50+ dollars a share today! 

  Time to sell for profit!  I did a little buying of BNGO the other day when it went low, doing quite well today.  Also watching for a buypoint on BYDDY, they should be good for long term (had bought some, but like to avg lower).  Same with CCIV (Lucid), would like to avg that lower, but waiting for below $20 on it.

I agree Mark, definitely not right and just sounds plain stupid!

J3ff

Still holding on for the ride!! 

J3ff

Not getting rid of gme till it hits the 1000's! 

If you want to see our government talking about gamestop... https://www.banking.senate.gov/hearings/who-wins-on-wall-street-gamestop-robinhood-and-the-state-of-retail-investing 

MarkB

Why should GME hit $1000?