This past year I entered into an informal agreement with a family member to trade his account. The agreement was that he would be responsible for all losses, and if there were profits, we would split them. I've made some profits. I want to know how/what is the most beneficial way for him to pay me as far as taxes go. He is in the middle income bracket. I only trade futures, so I am subject to the blended cap gains treatment (I have very low income). This is beyond the scope of the $13,000 tax free gift. Would it be best to give the rest as a gift anyway or perhaps declare me an employee and issue W2? My accontant doesn't really have any insight (I know lame) I think my filings annoy him enough as it is.