20Gauge
TB Fanatic
Everyone gets those clients who are difficult and seem to be so on purpose. Today we had one such client.
He decided last year that he was a hot shot day trader who would make his millions by day trading. Yet he didn't do the basic homework on the possible ramifications of day trading vs buying and holding when it comes to taxes.
What the heck are you talking about?????
It is called "wash sales". These are sales......
A wash sale occurs when an investor sells or trades a security at a loss, and within 30 days before or after, buys another one that is substantially similar. It also happens if the individual sells the security at a loss, and their spouse or a company they control buys a substantially similar security within 30 days.
The tax result of a wash sale is that you can not use the loss. The client had $40k in wash sales that he could not use. This frankly pissed him off and he started yelling at my mother that she didn't know what she was doing. After calming him down, he was asked if he knew what a wash sale was? Reply, "NO! I don't need to either, you are stupid!!"
These are fighting words! I start to get up, but at that point he decides he is done and leaves, so I don't have the opportunity to deal with him. (I am not going to jump a table and start a fight with my mother between us).
The wife finishes up the paperwork, pays and leaves knowing that they are not going to be able to come back.
They were FIRED!
Granted it was income, but I really don't need the money that bad. I will also enjoy it when he calls us next year to try and come back. Why? He will find his 26 pages of stock transactions anywhere else will cost him over $1500 in fees. I can't wait to tell to bugger off.....lol
He decided last year that he was a hot shot day trader who would make his millions by day trading. Yet he didn't do the basic homework on the possible ramifications of day trading vs buying and holding when it comes to taxes.
What the heck are you talking about?????
It is called "wash sales". These are sales......
A wash sale occurs when an investor sells or trades a security at a loss, and within 30 days before or after, buys another one that is substantially similar. It also happens if the individual sells the security at a loss, and their spouse or a company they control buys a substantially similar security within 30 days.
The tax result of a wash sale is that you can not use the loss. The client had $40k in wash sales that he could not use. This frankly pissed him off and he started yelling at my mother that she didn't know what she was doing. After calming him down, he was asked if he knew what a wash sale was? Reply, "NO! I don't need to either, you are stupid!!"
These are fighting words! I start to get up, but at that point he decides he is done and leaves, so I don't have the opportunity to deal with him. (I am not going to jump a table and start a fight with my mother between us).
The wife finishes up the paperwork, pays and leaves knowing that they are not going to be able to come back.
They were FIRED!
Granted it was income, but I really don't need the money that bad. I will also enjoy it when he calls us next year to try and come back. Why? He will find his 26 pages of stock transactions anywhere else will cost him over $1500 in fees. I can't wait to tell to bugger off.....lol