Launch HN: Financial Choice (YC S21) – Checking accounts with market returns

Re:Launch HN: Financial Choice (YC S21) – Checking accounts ... by jldugger on Monday August 09, 2021 @01:34PM (#28119725)

> Finally, this is a tax nightmare.

I can maybe get past the risk since I invest a lot anyways, and cap gains since interest bearing accounts are also taxed as ordinary income, but if every withdrawal causes a reportable sale, how is this not a IRS paperwork nightmare?

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Re:Launch HN: Financial Choice (YC S21) – Checking accounts ... by konne88 on Monday August 09, 2021 @02:18PM (#28120285)

You can usually aggregate all your trades into a single line on your tax form.

"You can aggregate all short-term and all long-term covered transactions and report them as single-line entries directly on Schedule D. A covered transaction is one where your broker provided a 1099-B Form to the IRS that: 1) Show acquisition date and basis and 2) Don’t require any adjustments or codes"

https://www.hrblock.com/tax-center/income/investments/report...

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Re:Launch HN: Financial Choice (YC S21) – Checking accounts ... by jklein11 on Tuesday August 10, 2021 @03:54PM (#28133459)

Let me make sure I understand. My broker (in this case Financial Choice) will provide me with a 1099-B with a list of every time I bought or sold a security(this seems like it would be any time a used the checking account). I can then use the 1099 b to figure out what number goes into Schedule D.

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