Registered: Mar 2007
10-19-12 09:23 PM
The type of account does not determine the tax treatment of 1256 contracts. Therefore your concern of maintaining the tax treatment of 1256 contracts while trading through an entity is a non-issue.
What you failed to look at however is that a trading entity will incur additional expenses and taxes such as the dreaded self employment tax, currently 13.3%, set to increase in 2013 to 15.3%, and higher data fees as example.
You must run the numbers... additional costs (including entity setup and the ongoing entity accounting/legal/maintenance expenses) plus the additional taxes and fees versus the transaction cost savings.
On the plus side, an entity allows you to generate earned income, which means retirement plans, health insurance, and other "company" benefit plans and programs, along with associated tax benefits become available.