Taxes preperation if you are Prop

Discussion in 'Taxes and Accounting' started by ireadtape, Apr 11, 2006.

  1. Hello everyone, I had a quick question. I SHOULD just go to a CPA and figure this out, but I wanna see what you guys have to say first.

    So I know that if your prop firm is an LLC (like mine) you will receive a Schedule k-1 from them. Do you have to file a schedule D 1040 on top of this? I started at the tail end of last year so I havent made any withdrawls yet. By year end I did have a capital gain in my account, but I didnt withdraw it like i said previously. My guess is I have to file something for my captial contribution but I'm not sure about the gain since I didnt make any withdrawls. Any help would be appreciated. Thanks.
  2. Sanjuro


    I'm not a tax specialist but I'm 99.9% sure this is the answer.

    No, you do NOT have to file a Schedule D on top of the K-1.
    All your trades from the prop firm are all included in the K-1 you got. Unless you traded stocks with another broker outside of the prop firm, it is not necessary.

    Good Luck!