Society for Case Research Spring Conference MBAA

Experience level: 
Intended Audience: 
C. Alan Blaylock, Brian Wruk

The Unintended Consequence of DIY Investing

A new day trader discovered he owes $800,000 in taxes on a net profit of only $45,000. The trader contacted Brian, a financial planner, for help. Brian wondered if the tax preparation software used by the trader was calculating the taxes correctly. Brian also thought perhaps the trader did not follow the IRS’s wash sales rules, thus negating many of the investment losses that could have been used against investment gains.