tax question for futures prop traders

Discussion in 'Prop Firms' started by mgarc, Mar 6, 2004.

  1. mgarc


    would like to find out from the futures prop traders out there...

    are you still able to benefit from the 60% long term / 40% short term capital gains rule for futures contracts?

    trading your own money gives you this benefit, but if you trade prop, can u still keep this benefit?

    thanks ahead for your input.
  2. okwon


    No. Not that I know of. Most futures firms pay on a W-2. Would like to know if you find anything though.
  3. mgarc


    any other thoughts from the tax experts out there? i'm sure there's got to be a way to structure it right.

  4. okwon


    I'm sure there's a way to structure it. But the question is, are the firms willing to spend the time and money to do so when it might not benefit them much.
  5. manna


    If you are paid as an independent contractor you still get it. They will give you a 1099 for that.
  6. mgarc


    thanks for the posts, will try to look into the 1099 option.

    okwon, true. think you'd basically have to be a potentially big $ earner for a firm in order for them to take the time and effort to find the right structure.