Hello, I understand that traders for prop shops like Top Step Trader are considered 1099 subcontractors...is this correct? If so, then I suppose that the special Futures 60/40 tax rate does not apply? Is that so? Are the profits taxed at the full rate against the net income? where net income = trade profit (gross income) MINUS standard business expenses (exchange fees, training, memberships, etc)? And, does anyone know if a checkbook IRA holding an LLC trading account would be tax exempt? Thanks
Hi there, forgive the rudimentary reply here. Wouldn’t this question be better directed at the Firm- and then maybe you could post their reply? Thx for raising awareness of the shop though with this post. Any other shops that offer a similar service to them that are worth checking out?
Never done that model. Cme rules, you need to put up 250,000 and become a non equity member to get the tax treatment.