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    Venting – Robinhood screwed up my tax lots and now I’m out $10,000+

    This is a gain but actually loss post. I need to vent.

    I got into $NBIS during the pre Liberation Day dip, with about $50,000 at an average of 30 bucks. Many of my shares were purchased in mid March, and given the NBIS pump I've been holding to get them to 1 year old so that I'm charged 15% cap gains instead of 32% income tax. Then I'd be putting the money towards my brand new mortgage from October.

    But I decided to play some call debit spreads during the volatility this past week and was successful. But then when it was time for shares to be called away as part of the short leg of the call debit spread exercising, I messaged Robinhood Support to switch tax lots to the long leg instead of the usual FIFO. I've done this dozens of times before to max out my tax advantage without issue. I even messaged twice over the weekend to make sure it was going through because of how important the tax dollar difference was to me.

    Today I noticed my old tax lots were still missing and my cost basis was still way off. I messaged today, and the support staff tells me "Woops looks like they couldn't use the lots of the long leg of the debit spread because they exercised after the sale leg". No notification, no heads up during the week, nothing. I asked if I can switch to LIFO instead. Nope too late.

    So now I'm left with a massive short term gain and the risk of an IRS underpayment penalty. After my margin is all squared away, I'm transferring brokerages.

    https://www.reddit.com/gallery/1rng43y

    Posted by doctah_Y

    25 Comments

    3. No_Debt5142 on

      Another day. Another person getting screwed by. Robin Hood. When will people learn. You have free will to choose any broker you know.

    4. occasionalgambler on

      Robinhoods business model doesn’t involve users who know what gains are

    6. Ok_Category_5847 on

      Switch to a real broker. Robinhood is the discount bin broker and you got discount bin tax handling.

    8. PickleRickleTV on

      You should be able to switch tax lots. I don’t think they can legally tell you which shares you wanted to sell. I would call them again and insist.

    11. myCarAccount-- on

      What broker are people using lately?  I like the RH app but yeah I see way too much of this stuff, there are usually matches for switching, and I don’t like how much money ultimately RH makes for the MMs.  I’m thinking of switching too.

    12. ExpressGeologist5171 on

      You made 373k over the past 365 days pressing buttons and you’re mad about paying some extra tax… un believable.

    13. Brain-Silent on

      Try doing some 0TDE options next week. Worst case you can subtract your losses and the best case is you win and use those winnings to payoff the taxes

    14. Muted_Thought8382 on

      Is the issue with the lack of notification, or did they implement the sale wrong when you gave them ample time to adjust?

    16. CuteHand on

      Your fault for not using LIFO ahead of the trades but instead waiting to the last min. Yeah RH is pretty bad esp when they close options 30 min before trading ends but that’s what you get for using an app based video game like brokerage.

    17. Robot_Hips on

      Why are people still using Robinhood? I’d never trust them with my money with their history and all the shit show stories like this one that I see posted all the time

    18. soscribbly on

      I’ve had support fix LIFO FIFO realized gains issues. Try a diffirent rep or call until you get someone with sense

    19. Aznfeatherstone on

      If it makes you feel any better, you wouldn’t have been paying 15% LTCG if you are paying 32% in income taxes. You likely have to pay 20 +3.8% NIIT. So the spread isn’t quite as big as you were thinking 

    20. Time-Philosophy0323 on

      You have impressive tax knowledge. Why in the world would you trade on Robinhood given how bad they are for any traders who know what they are doing?

      Terrible dark fills. Wider spreads. No access to NYSE (ARCA). Many other reasons.

    21. BasSTiD on

      Fidelity has promos where your first 10k options contracts are commission free, and contracts under 1.00 close free I believe. Index still has a small fee.

    22. Raccoonpug on

      You should ask chat or gemini if you are correct or not because it seems you dont know what you are doing…

    25. coastalvida on

      I was just thinking of rolling over my account to RH. This is the sign I needed. Thank you for your sacrifice

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