Company Trading

Discussion in 'Professional Trading' started by tntneo, Feb 16, 2002.

  1. tntneo

    tntneo Moderator

    There is quite some info available regarding trader status and mark to market etc for an individual.

    But what about a company ?
    When a company is trading actively (obviously falling into the Pattern Day Trading), how much tax will it pay on gains ?
    Is it as important to a company to claim mark to market as it is important for an individual trader ?
    Will the gain be declared as capital gains or ordinary income ?

  2. MTM accounting transforms cap gains/losses into ordinary income/losses regardless of form (e.g. sole proprietorship, LLC, S-Corp, LP), AFAIK.

    Also, again AFAIK, a legal entity can elect MTM accounting as soon as it is formed (i.e. it is not limited to the 1/1-4/15 window period).
  3. tntneo

    tntneo Moderator

  4. tntneo

    tntneo Moderator