How are the various parties in an OPM arrangement handled as far as taxes are concerned? Example... One investor with 100 million allows you to trade a futures account with agreed fees of 2 and 20. Let's say the 2% is based on the 100 million, for simplicity. After one year there was a 50% return bringing the account to 150 million. You've made 2 million on the 2% fee and 10 million on th 20% fee for a total of 12 million. Do you get taxed at ordinary income of approx 40% of the 12 million, or does it get treated as futures income of approx 28%? Do you have to take the money out, or can you leave it in the account and not pay taxes until withdrawl? How does the investor get taxed if they 1) Leave the money in 2) Withdrawl profits remaining after fees? What if the account is set up under a CTA or hedge fund type of organization and not just trading a personal account? How is the investor and trader (you) taxed? Thanks for your help and information.