waylook

Thats so overly broad.

youngmoneyhack

IMO this is the most underrated MS option available right now. Not necessarily worth the hassle for day-to-day MS, but easily one of the most appealing ways to meet large threshold spending, such as UA PQD waiver or large signup spending threshold. With about 50 stocks at 2500 mo limit each that is max 125k/mo with at least 10 stocks I would consider very low beta, including BRK.B which is essentially a mutual fund.

For many people the value of 25k UA points plus PQD waiver, for example, is very likely much higher than the sum of any losses from holding $25k worth of low beta stocks for a few days.

EGFLYER

agreed. i'm in for 10k today

Bttc

I'm not bothered by the small risk of losing money on the stocks themselves, but do you know how much of a hassled this is going to be with the tax-man? You have to track every cost basis for your gain/loss separately--and since you're likely rebuying the same stocks repeatedly, you have to worry about the wash sale rule too, which is even more of a hassle.

If you want a way to buy your regular buy-and-hold stocks with a credit card, I think this is a good option, but repeatedly buying and selling for MS, this is going to have way more downsides than upsides.

hamhead

Just like any other broker-dealer, Loyal3 is required by law to provide you with end of year capital gains reporting.

It is as simple as attaching what is sent to you and mailing it in with your tax return.

Like I've mentioned in this thread before, I've been an active trader for years (5+), with some years making 500+ individual buys/sells. End of the year, I get my capital gains reporting and attach it directly to my Schedule D. For those who do not paper file anymore (I guess I'm old school for a 26 year old), most tax programs will automatically read and format your tax reporting documents into your form.

There are reasons people might want to avoid this. Paper trail isn't one of them.

GeorgeMilesArnold

Is it possible to do a "limit order" with their system?

Beckles

I don't believe this is very sound tax advice, I don't believe brokers' statements of gains and losses is an appropriate attachment to your tax return, the information should all be entered on your tax return on Schedule D and that is it.

binnycode

No.

All you can do is put your order in, wait 3 days for the CC funds to clear, then they buy the stock at market price at some random time after 2pm EST.

Nomoneyinmybank

With the demise of VR, I may just give this a try since I'm already invested in stocks for 6+ years

Father-of-3

Just so we are clear on this, you are completing the schedule D with the activity for any stocks you sold, right? Generally you don't report a purchase but when you sell you need to report the gain or loss. I guess if you only have losses you might technically not need to report them if you didn't want the tax credit. The information above sounds like you might not be accurately filing and an audit or more likely just a bill from the IRS is in your future.

hamhead

Correct. My comment about buys/sells was just in regards to volume of trading.

To clarify further, Schedule D has the totals of your short term / long term capital gains - Form 8949 which is attached to Schedule D has the line itemization that people are speaking towards where each sold transaction is recorded.

I'm just stating was has worked for me in the past. Technically the instructions state to line item your sold transactions (date bought/date sold/cost basis/proceeds/etc.) directly on Form 8949. I just put a note to see attachment. I'm not a tax advisor, but I have had advisors state that'd work fine.

IRS is just going to compare what was reported to them by the broker compared to what your totals are on Schedule D. It has been federal law that all brokers report all of your cost basis/proceeds information since 2011 - most did so before then as well in preparation for the law change. Since I don't engage in any transactions that would not be reported on to the IRS, my totals are always going to match what they have on file for me in regards to capital gains/losses. There is no audit trigger, and if it did I'd have nothing to worry about. Everything is fed through computers nowadays - the IRS has a number it expects you to have owed, and when they receive your return they compare to the total you say you should pay. If the numbers are off by a relevant amount, it is researched. If it isn't, see you next year.

And as I've stated, if you E-File (which is about 75% of people nowadays), most tax programs will automatically populate Form 8949 for you. Then all this is irrelevant to begin with.

yoshapman

What's the minimum amount of time you need to hold onto a stock for? Can you sell a day later?

birdhands

What about slow and steady, with minimal exposure, say, one stock at a time/$500 twice per week? Seems pretty low-risk; worst case scenario near break even, especially if using a 2%+ card. Or am I being naive?

bu08usc11

If you use a CC it takes about 3 days before the stock shows in your account. Once shown you can sell immediately and it'll take another 3 or so days for the money to be "available" for withdrawal.

It is not a quick turnaround by any means in the MS world but it's free (fee wise) and a nice way to supplement other MS $2,500 at a time.

I do mine by on a two week time table. I'll buy, say, Monday and sell the following, say, Tuesday so that funds would be withdrawn Friday. That way it's not immediate buy and sell which will get you flagged (my opinion). My way may get me flagged to but we'll see. I also believe buying 30k in a month and selling and turning that over will do the same. As with all MS, slow and steady wins the race.

heyeaglefn

Waiting 1 day to sell and doing that over and over will definitely get your account flagged.