I typed a long answer, and then my IT guy came in on Saturday and shut me down by mistake...I'll re-do a good response...sorry. And thanks for the kind words!! Don
Of course, I agree....nothing to do with trading at all...it's just that it's the "law" to be able to use the Firm's money, have direct order routing, and have a "triple net" tax policy and exemption from self employment taxes....and it's nice to use $$million each day for nothing...a pretty good edge... (You're absolutely right, S7 has nothing to do with trading). Don
If a firm pays you with a K1 what does a S7 have to do with anything? If you are trading with or without it why does that matter at all with taxes?
The S7 allows use of the Firm's capital....no license = Pattern Daytrader rules and/or margin, pretty restrictive. Also, Mark to Market accounting helps considerably with taxes. Don