Taxes for Prop. Traders

Discussion in 'Options' started by LelandC, Jun 21, 2001.

  1. LelandC

    LelandC

    I was wondering if anyone could tell me how those folks that trade for Prop firms such as Bright, Worldco, Echo, etc are taxed? Do you receive a form K-1 at the end of the year? Do you know if the trader is responsible for paying Self-employment tax?

    Any input would be great,

    Leland
     
    #1     Jun 21, 2001
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  2. Bryan Roberts

    Bryan Roberts Guest

    yes you do receive a K-1 at the end of the year. I am not a CPA nor a tax attorney but it is my experience that there is no self employment tax due by the trader......you really need to talk to a CPA with experience in LLC's/trading or else you will be mislead.

     
    #2     Jun 21, 2001
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