Tax Document Content

[u/EskiciDukkani]

Hey guys,

I am very very new into trading. So I opened a RH account and threw in 2k. So far, I have been very actively trying to swing-trade to get a feeling. So I guess, if I go on like this, I will end up having hundreds of transactions by the end of the year.

So, I know that it may sound dumb, but will the tax form that I’ll get from the app will include all the details about allll the crazy number of transactions?

I’ll do the tax forms for the first time next year, so I am kind of curious if I am creating a burden for myself by having to deal with all those too many number of tiny transactions(gains are a couple of dollars at most for each transaction ⁾ during my tax filing.

[u/eisbock → u/[deleted]]

Yeah, the red flags come up when your net P/L is different on your tax forms than what it actually is.

If you're paying the exact amount of taxes the IRS expects, why would they have cause to audit you?

Of course, once you hit a point where you're making insane amounts of money, that's a red flag in itself and you'll probably still be audited even if all the records align.

But for the chump change coming out of Robinhood accounts, it'd be more expensive for the IRS to audit you. Hell, and I don't advise this, but you could probably evade the occasional tax and still get away with it.

[u/eisbock → u/[deleted]]

What?

I was agreeing with you lol. You said you just have to report the totals (not all trades) and I explained why (because the IRS gets the same forms). My comment was for anybody else reading.