So they had you list every trade on form 4797? Thousands of them. It seems like some people here are filing without listing trades while others do list them. Putting all those trades on Form 4797 is a real pain. -Guru
The only form of LLC that uses Schedule C is a SMLLC (Single member LLC) with no formal change to taxation methodology, which as far the IRS is concerned is a disregarded entity, and is treated by the IRS the exact same as a sole proprietorship. That said, an LLC, single member or not, can file for a corporate tax status, and specifically CHOOSE to be treated as a C-Corp or an S-Corp for tax purposes. The form to effect such a change is 8832. By default, a multi-member LLC (or a de facto partnership) file taxes on form 1065. K-1 preparation is required as well. An LLC choosing a corporate taxation method file form 1120, or 1120S. An S-Corp (1120S) requires preparation of K-1 as well. The only form of LLC that uses Schedule C is a SMLLC (Single member LLC) with no formal change to taxation methodology, which as far the IRS is concerned is a disregarded entity, and is treated by the IRS the exact same as a sole proprietorship.
for trade records I send the form '8949' from IBKR in PDF and CSV formats - it contains all trades. From Fidelity I just send the consolidated 1099 in both PDF and csv format which contains all the trades.
No sole prop. I saw no advantage to llc. Also i don't know why green required all trades . I used him from 98-2003 and we did 1 line accounting .
Why would they deny for someone being a w-2 programmer? As long as you have enough trades and are spending enough time in this "business".. 4 hours a day / 4 days a week / 720 trades a year is what I read as the general benchmark to qualify
Maybe they would. But i could have sworn it had to be a could portion of your income . If you made $150k as a programmer and were showing loses as a mtm trader i'm sure they'd audit you .You can do anything you want till the irs audits you . I've never been in that situation so i don't know the answer .
So you just print out the cosolidated pdf and send that in? I guess it could do that but my 1099B is pretty damn long. I guess no different than listing every trade on form 4797 and sending that in, lol.
Yes no doubt but try to write off a $150k mtm loss vs the $3k loss standard loss and see if they don't challenge it as a "business" . There's no set definition of what a full time trader is and they set the rules