I am new and my trading is not very complicated - only equity and equity options. I do qualify as trader, so thats fine. I didnt have M2M for last year but will going forward (thinking about it). Entity is a 2 member partnership (husband and wife) and we are NYC residents. My question is the forms that we need to fill out for Federal and NYS/NYC. Federal Form 1065 Schedule K Schedule K-1 We dont have to do balance sheet and schedule m if required conditions are met. Form 7004 - if filing for extension. NYS/NYC IT-204 IT-204LL Whats really confusing me on NY taxes is MCTD tax and if we are liable for that. I know entity is not liable for NYC UBT if trading for own money, but not sure how to handle MCTD. And also for MCTD and for IT-204LL it asks for NY source income - which is fine if I am supposed to show entity gains - losses, but in the worksheet it says to add only gains from 8949, not losses. That is insane. So if I had 10 trades with $1.1mn gain and 10 trades with $1mn loss (simplistically) my gain is $100k. But according to the worksheet I am only supposed to include gains as NY source income and pay 204LL fee on that. Is this right? And then this same NY source income flows through for MCTD? I am sure I am thinking of it wrong.