A Tax IQ Question
A day or so ago, an Asker asked: "I have a total of $710,271 in short and long term losses. Why does line 7 of my 1040 indicate a loss of only $3,000???"
@IRonMaN said: Based on the sophistication of that question I'm thinking you might be looking for Turddotaxx.
@George4Tacks said: It is because it is the right thing to do.
All good.... This would have been my comment:
If it were me I would say: "Line 7 of my 1040 indicates a loss of $3,000. OMG How in the world did I lose $710,271???!!!"
That got me thinking, Friday afternoon regimen (for those who don't already know, bourbon) in hand.
Scenario one: If one had earned the money, would he/she/it lose $710K in one year?
Scenario two: If all that lost $$$ had been handed down, who would hand it down without handing down also the name of a prudent tax geek?
Which brought e to this Tax IQ or rather trivia question. Whoever comes up with a reasonable answer earns my kudos and a shot of my regimen. (Didn't I mention this already? I come here only for kicks, drama, and kudos?)
I lost a lot of $$$ in stocks. NO margin account. NO crazy calls and puts. Just in stocks.
I lost $710,271 according to my 2021 brokerage statement. (Likely Robinhood). I know I did NOT have that much money in the account, but after entering the info in Turbo tax, OMG I lost $710,271. I check the math, what I had entered in TurboTax. NO math error there.
What did I miss?
Can you come up with a plausible explanation for my $710,271 loss?
