LLC and 1256 contracts

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

  1. razf1

    razf1

    All,

    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.

    Thanks!