LLC and 1256 contracts

Discussion in 'Professional Trading' started by razf1, Nov 4, 2009.

  1. razf1



    Question for those trading in an LLC...since capital gains are passed down through schedule-k how can you split out the capital gains 60/40 like you do personally for 1256 contracts.

    My understanding is when you trade in LLC its passed as ordinary income and not an investment. I hope this doesn't mean you lose the tax advantage of 1256 contracts.