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The SEC and Wealthfront

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  • Avatar Peds 
    Participant
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    wasnt there a thread with someone with a 90 page long 1099?

    better make sure you look at everything for a wash sale….cause Wealthfront didnt…

    https://www.sec.gov/news/press-release/2018-300?inf_contact_key=d21407a633db7c9f342f566128528732680f8914173f9191b1c0223e68310bb1

    #206180 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
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    Honestly, I think there is little to nothing to be gotten in exchange for the frenzied trading from these sites. But all those transactions seem to make people feel better and alleviate that nagging need for personal responsibility.

    Or, maybe not.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #206183 Reply
    Liked by Zaphod, Peds, ENT Doc
    ENT Doc ENT Doc 
    Participant
    Status: Physician
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    “Over a period of more than three years during which it made this disclosure, wash sales occurred in at least 31 percent of accounts enrolled in Wealthfront’s tax loss harvesting strategy.“

    Robofail

    #206186 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3399
    Joined: 01/08/2016
    Or, maybe not.

    Click to expand…

    dont just stand there, do something!

    #206187 Reply
    Liked by Lordosis, ENT Doc
    Avatar Peds 
    Participant
    Status: Physician
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    Joined: 01/08/2016

    Robofail

    Click to expand…

    #robofail

    #206189 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 1822
    Joined: 09/18/2018

    “Without admitting or denying the SEC’s findings, Wealthfront consented to the entry of the SEC’s order censuring it, requiring it to cease and desist from further violations, and imposing a $250,000 penalty.”

    Wealthfront made out like a bandit and the IRS didn’t catch one! That’s a win-win-win-win! SEC, IRS, Acct holder.

    From a financial standpoint, TLH for the volume of small loses is like clipping coupons. No one gets rich off of coupons. Activity trap.

    #206192 Reply
    Avatar DCdoc 
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    That was me. A 90 page 1099. And I didn’t realize the complexity it would add to my taxes until March so I have at least 1 more similarly complex tax return. The TLH wasn’t even that big on a percentage level. So it was (literally) hundreds of transactions with TLH amounts under $5

    #206284 Reply
    Liked by Vagabond MD, Tim, Peds
    Avatar Tim 
    Participant
    Status: Accountant
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    Joined: 09/18/2018

    @dcdoc,
    A lot of data entry if I recall. All for $5 loss. That definitely Hall of Fame material.
    Just don’t believe that day trading maximizes daily profits, add them up and it’s the absolute best you can do! Sounds good, except it’s not true. Closing doesn’t equal the opening. Rethink their allocations. You can do just as well or not. Good luck. How many hours did you spend?

    #206292 Reply

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