What line do you use with the 1099 misc? line 3 line 7? Also don't you have to pay SS tax with a 1099 misc? Also you wouldn't be able to write off a loss on a 1099 misc
Does anyone know if you can offset a loss on a k-1 (schd d) from a gain on a 1099-misc?? How would this work?
Man this thread only confuses me with my case. Me: Will probably will get a 1099MISC. Can get a W2 if really needed. Problem: Since I go through a Prop firm and trading is not my fulltime job how do I record a loss. I have a loss of 3-4K on the prop trading account for the year and want it to reflect in my 2007 tax filling. Any pointers?
What is all this with trading/prop firms giving out this 1099 misc? In 2004 llc's @ Genesis and Assent got in some sticky situations for this. You don't work for them, you get paid based on your capital gains(if you get paid a salary then this doesn't apply). If you get a 1099 misc 90% chance in 3 years you will get a letter from the IRS like everyone else is getting now from the 2003/2004 debacle. You can get a 1099B from a llc as this is what you get when you go retail. Outside of making money on your tix they want to screw you by giving you this 1099 misc. Call your firm and tell them what they give you as far as a 1099. Then pick up the phone call your accountant . To sum this up 1099 B or a k-1 is what you want. As far as what Don Bright is doing with his k-1 for his traders he is doing the right thing and not saying F U to his traders like if you got a 1099 misc. To the last post if you have 100k loss from 2006 and have a 100k gain in 2007 you can't offset it with a 1099 misc. As far as having a loss with a 1099 misc and use it the same year with income from work speak to your accountant but iam 80% sure this can be done.
Our traders submit detailed expense information, along with original receipts. K-1 is simply one net number. Don (This is all personal opinion, not intended as tax advice, and has no connection with Bright Trading or any of their affiliates)
I don't like to get into too much detail (see above disclaimer), but our traders, and all Professionals in a K-1 situation, do not have "capital gains" - are taxed on mark to market as ordinary income, and are completely exempt from Self Employment (FiCA) taxes. If you're getting a 1099, for some reason, as misc income, I assume you can file a Schedule C and expense normal business expenses. 1099-MISC If you earned more than $600 from a person or company as a self-employed individual you will receive a 1099-MISC from the individual or company. You will receive a separate 1099-MISC for each independent job you had during the previous year. This income is generally reported on the Schedule C. Once again, I left Public Accounting in 1975, LOL....I suggest you find a decent accountant. However, there are very few who really understand the K-1 Traders. Good luck, Don