We Owe $145,000 To The IRS Because of Day Trading

Brought to you by the EveryDollar app. Start budgeting for free today. I'm calling to see what your advice would be on selling our family home. We've got four kids in order to pay off a large amount of debt. And so how much is a large amount of debt? So we owe $145,000 to the IRS, $145,000. And then we have $100,000 on our home equity lines credit and then about almost $50,000 on medical expenses and car payment. And what's your home worth? Our mortgage is for $470,000 and we have an offer currently that we just got for $755,000. So it would allow us basically to clear the debt and restart, but our hesitation is with just our kids. Where did all this debt come from? So my husband was the primary breadwinner. I was home with our kids and he got into day trading. And I am guilty of burying my head in the sand and not getting involved in our finances. So he made quite a bit, lost it just as quick and then turned to credit cards and then didn't pay taxes on the capital gains he made with the trading before losing it all. There's not capital gains on day trading, there's ordinary income on day trading. And there's also a loss you can take if you've lost money against that. Do you really think you have the whole story? You know those free samples at the store that are up for grabs for anyone? Well, that's basically what's happening with your personal information online. Data broker sites collect stuff like your address, phone number, email, even your family's information and just post it online for anyone to grab. And that's why I use Delete.me. They remove your personal info from hundreds of data broker websites and keep it gone. So stop letting random websites treat your data like it's free samples. Get 20% off your annual plan at joindelete.me.com slash Ramsey. I'm not entirely financially literate. This is something that I'm trying to get more involved in just in the last couple of years. Taxes in particular. I mean, when did all this happen? This happened about, well, I think it was happening for quite some time. But again, I kind of was baring my head in the sand and he just came to me three years ago. We had a major health crisis and he said, you know, I got to come clean. We owe quite a bit of money. I cleared out our 401k. I cleared out all of our savings. Okay. So you've been limping along with this together for three years with you having knowledge of it. Yes, sir. Yeah. We've been married for almost 20 years, but we, after years, I've had knowledge of it. And what does he, what does he make a year? He makes 180 as a base, but he's in, he's in sales. Um, but it's been a tumultuous and very dry couple. And he's not, he's not day trading anymore. Correct. Okay. So your, your question was interesting. You said, um, we would do this except for the kids. I think you have to do it for the kids. You have to get your life back for the kids, your kids, your kid. The definition of your kids having a good life is not where they live. It's who their parents are and how they act. Yeah. You live in a house that's way nicer than you grew up in. So do I. So does Ken. And we didn't die from that. And it didn't malform our character from that. Yeah. So sell it and clean up the dad gum mess. If the problem has gone away, no more day trading and no more deceiving. And you guys are working together on this. Then he takes his 180,000 and hopefully more 250,000. And you guys work to rebuild your lives and buy another house someday. But in the meantime, I'm going to be free, baby set me free. And I think that, I think the stress level in the air of your home will go down and the children will benefit from that far more than they were having that particular set of bricks and mortar. Okay. That's a good word. Yeah. I'm just going to add, just do your own research tonight on how stress affects your physical health, not just the mental and emotional. We forget what it does to the body. So I would just add, if I had the chance to fix this and I love the fact that he came forward three years ago, if you guys are on the same page now, I absolutely agree with Dave. This is a reset. A reset with, with the idea though, that we never do this again. Yeah. I mean, he has to say, I lost our house. That's right. This is a day trading. I lost our home. That's how big a deal this is. Okay. By the way, I lost everything and went bankrupt because of my choices, not my wife's. All right. When I, when we went bankrupt 30 plus years ago. All right. So that's, you know, and I get to own that the rest of my life, but I also never did the things again that put me there again, ever again, again, again, never again. You see, I mean, you say, you know, I lost everything. I lost my home. We did not lose our home, but we don't, the only reason was there was no equity in it. And so, so it survived the bankruptcy, but, uh, and it wasn't that nice a house anyway, but the, uh, anyway, yeah, we, we just said, you know, we lost everything. We get the opportunity to start again, fresh and clean. And, uh, in your case, that's the sale of a house. In our case, it was a bankruptcy and we're never going back here again, and we never went back there. And we, from that point forward, we never, I never bought anything that Sharon and I don't both agree to investments or otherwise. And so, yeah. Uh, so I think it's fair to say just to outline for everybody, just to let you guys know out there, this is not a, um, unique situation. Here's the numbers. And this is the most bizarre number I have almost ever heard in the investing world. If you day trade for 36 months, continuous 97% of you lose money. That's how stupid that is. I mean, if you said 97% of the time you walk across the street, you get hit by a car. You would not walk across that street under any circumstances. You wouldn't be the one guy that says Frogger, I got this. You wouldn't be that guy you'd be going. No, that's those are not odds. I want to play. And there is something about the arrogance and pridefulness that says I've got the stock market figured out. If you hear someone say that laugh at them, they are funny people. They're statistically stupid human beings. 97% of you that day trade 36 months consecutively lose money. Now you need to hear that because some of you get a little fishing story where you hit a lick and you go, Oh, I made some money. And it's just like gambling in Vegas. Now I'm going to go back to the table. And the only part I'm going to remember is the time I won. I'm going to forget about the 16 times I lost. And when you add it all up, you lost. That's how they build those nice hotels in Vegas. So true. And the same thing is true at day trading. You lost poor guy, poor gal. What a horrible thing they're going through. But some of you people, man, you're sitting out there one day, Ramsey doesn't understand. Listen, I understand what I understand is why, what I don't understand is why you don't understand 97. What other number do you have? This 97% of anything ever. That's not statistically significant. That's like a fact you're going to lose money. Oh my God. And it has the same trap that gambling does. Oh, it's exact same exact. Cause it's got feedback loop. Yep. It's the same thing as draft Kings. Same crap, same exact thing. That's why the sports betting has gone through the roof. It's a feedback loop, a scarcity feedback loop. And, um, you know, our friend Michael that wrote, um, comfort, his second book Easter, his second book, it talks about that a lot. And he went into great depth study on that, about the dopamine hits and how you just keep cycling back into this thing. And you cycle back into this thing and it's, but yeah, it's just pushing the same button and it's. But it always has at its core. This ridiculous arrogance that I can beat the house. It's just, it's arrogant beyond pride comes right before you have to sell your house because you lost everything. Wow. Pride comes right before the fall. Create your free every dollar budget today. The simplest way to budget for your life.