I noticed that several of you are asking about K-1's from your various firms, and thought I would just mention that I hope you realize that you don't need the K-1 at all, ever. Your K-1 is not to be filed with your 1040 anyway. All the numbers you need are on your year end sheets, and have been for months. I informed our traders of this in January (every year a few still ask). Ours are out by now, but if yours are not, it doesn't necessarily mean that your Firm is lacking (in this regard anyway, LOL)... Check with the Firm, call the bookkeeper, whatever...get the number, prepare your taxes... Firm's are under no obligation to send out K-1's until much later in the year (I'm sure they all try to get them out as soon as they can). So, good luck with your taxes... Don
Firms will frequently report different numbers than the individual trader may have. Nice try. Firms should ALWAYS give you your necessary K-1 prior to april 15...if they don't file an extension & give 'em hell. Then file prior to Aug. 16 this year....with the K-1 they should've given you much earlier.
You may be right as it pertains to other Firm's, but having been in Public accounting for years (personally), we try to keep it simple. We have been giving our traders their (correct) numbers by January for a decade or more...and most have filed this year by now. Our traders keep 100% of their trading profits, so we don't worry about some of the shenigans that some firms may take part in (having any "creative accounting" possibility).....this makes it easier for our people. (Darn taxes anyway)....LOL Don
I spoke to Gabrielle about this in January or February. She said late March or early April for the K-1. The firm recently sent an e-mail stating exactly what Mr. Bright just said regarding his firm. Regular traders (Class B members) can just use their end of year information. Go to netsheets and get your December 31, 2003 haircut report. It has your P and L for the whole year, which should not change on the K-1 since Echo also has 100% payout.
Do you get state k-1 info out by January? I was told that if I am an investor in an LLC (which is the basis for being able to allocate 100% as I understand it) then I get my "economic" number (my trading P&L) from my sheets or my cap account, but my state allocations are determined based on soome formula that is truly over my head, but involves revenues per state or where the stocks I traded are domiciled or something. Do Bright traders who live and work in California for example have to pay taxes in any other state besides California?
Your individual (STATE) situation is something that I cannot address. Simply take the "number" (P&L from "partnership distribtution") to your accountant...they should know what to do with it. Don
Thanks for the answer, but do your traders get state allocations that are different from the states in which they live? If not, why do some LLCs do that?
I think the state allocations would only apply if they were trading full time in a State that they were not registered in (or if the B/D was not registered properly). Like ball players who live in NYC, but play a few games in Calif. have to pay Calif taxes...I don't think we (BT) have those concerns. Don