Quote from Bourbon84:
Thanks for the info, that's very useful.
Try to avoid a K-1 also - the tax treatment is not as good as flowing 1256 gains directly to your individual 1040 return.
And again, yes you will most definitely want to itemize deductions like your home office, internet, quotes and charting, hardware, software, your out-of-pocket insurance expenses and medical and maybe some entertainment and lots of shit like that, and then get the advice from your CPA about further smart planning like a SEP-IRA possibly ?
Make sure you build out your home office into a real showcase and palace to your sweat equity - treat yourself and take the deductions. Get a couple big desks, really nice comfy chairs, real legit workstation PCs with multiple monitors, ECN - Oh, and for God's sake, put a plasma on the wall "for you to monitor the finanicial news channels" ( ahem ). Put something there to relax you that looks great; lots of traders are partial to a nice marine aquarium setup. Maybe hang some nice art if you've really had a good year and that's your thing.
Congratulations, and keep a level head. Grind it out. Hit for average. Stay in the present. Don't quit your "real" job until you just can't stand it any longer and it just is absurd to your CPA that you keep it. Having that 'security' is a real and tangible psychological edge.