Earn 2 Trade the gauntlet
- Thread starter caacapital
- Start date
does it have to be a multibroker lifetime license? will single broker license work?
I do not believe so, due to the way Ninja grandfathered their licenses. If you have a single broker lifetime license, upgrading NOW to a multi-broker license would not stick, because that other broker was not a part of the Ninja Ecosystem at the time. Or...That other broker (Helios) was a part of the ecosystem, but you'd then have to...
Holy cow, I am having an aneurysm on Raymond Deux's falderal. NVM, it is too confusing.
Earn2Trade-Ryan
Sponsor
There are a lot of differences, I would suggest speaking to our live chat!
Hi Ryan,
One more question regarding Schedule K1.
After passing the regular Gauntlet: if someone completes the simulation phase successfully then the profit earned (and withdrawn) during the simulation phase is reported as ordinary income or capital gains on schedule K1?
(I know you said that If someone is with the company at the end of the year then its capital gains otherwise ordinary income. But as simulation phase is not real trading, would like to know about the same)
One more question regarding Schedule K1.
After passing the regular Gauntlet: if someone completes the simulation phase successfully then the profit earned (and withdrawn) during the simulation phase is reported as ordinary income or capital gains on schedule K1?
(I know you said that If someone is with the company at the end of the year then its capital gains otherwise ordinary income. But as simulation phase is not real trading, would like to know about the same)
Earn2Trade-Ryan
Sponsor
LiveSim would be ordinary income since isn't real futures trading.
It's really getting complicated, Ryan. So a trader will end up getting ordinary income (simulation profit) and capital gains (live profits) on the K1.
To be honest: I did some research on Helios' Schedule K1 reporting and its really not serving any purpose to international traders. Infact,
(1) all international traders will end up filing income tax returns in the USA as well as the home country (even if there is a tax treaty with the home country simply because K1 reporting demands 1040NR and K1 attachment). This itself will cost around $450 (based on my inquiry with one CPA)
(2) If there is ordinary income on K1, then international traders will end up paying taxes also in the USA along with return (and then they need to convince the home country tax department regarding tax treaty)
(3) If there are capital gains on K1, I am still investigating where the tax money should be paid (the USA or home country). I tried asking the same question to a CPA and the firm demanded a $250 consultation charge to just let me know the answer. I assume it is home country tax department where tax money should be paid for capital gains on K1 but not sure about this.
I don't know why Helios structured it this way. All other firms (SMB, LMI, OneUP, TopStep, Savius) make it very simple by appointing traders as 'self-employment' I don't think all these firms are breaking rules. They must have done their due diligence as well. I am sure Helios also must have done their due diligence as well. But wonder why it like this for Helios?
If it would have benn 'self-employment' then I would have taken Gauntlet long back.