in 2009 - made $16,000 with a W2 -lost $12,000 with a prop firm -made $4,000 with another firm -had $6000 of expenses (computer, office rent, trading classes) both are typical LLC models Can I take my k1 losses with my expenses and offset this with my w2 income? I have not called an accountant yet, so that is why Im asking $16,000 + $4000 = $20,000 total income $12,00 losses + $6000 expenses = -$18,000 ???? = $2,000 ????? thanks
I'm only replying because no one else has. I know little about this, so take it at that. I suspect you can't offset that loss because there is a $3,000 investment loss limit. I hope I'm wrong, but you'll need to go to a real accountant who understands tax law for a real answer. Don't do your taxes based on a web forum.
I am not sure, I am not a professional. But I believe you can claim the k1 as business expenses, thus taking away from earned income.