K-1 tax status question?

[proptrader11]

Does anyone know the tax status for a Class B Member K-1 Trader living in nyc? How do you determine the tax status on a K-1? Thanks

 

[Surdo]

Wouldn't it make sense to ask the CPA firm that issued it or does the taxes for the partnership?

 

[bone]

Definitely check with your accountant, but do not be shocked if the tax treatment is for 'ordinary income'. (i.e., no capital gains) Also do not be surprised if you get scolded for not paying estimated quarterly taxes since partnerships typically don't issue W-2s.

NOTE: definitely get a referral for a CPA from your firm or another class "B" trader - I have encountered many CPAs who were ignorant about tax matters for proprietary traders.