I have some capital losses in a retail account (<50 trades) and my K1 for a money up prop firm will reflect an income for year 2011.
Can these losses offset K1 income?
I have trader status and M2M, but was told that due to the fact that I had not traded enough in the retail account (need 500 trades), I cannot have capital losses treated as ordinary losses and that account will be looked as an investor account, and not active trader so I cannot offset. That doesn't sound right to me since I go through thousands of trades a day in my prop account with my capital at risk.
Anyone have experience on this?
Thanks in advance
Can these losses offset K1 income?
I have trader status and M2M, but was told that due to the fact that I had not traded enough in the retail account (need 500 trades), I cannot have capital losses treated as ordinary losses and that account will be looked as an investor account, and not active trader so I cannot offset. That doesn't sound right to me since I go through thousands of trades a day in my prop account with my capital at risk.
Anyone have experience on this?
Thanks in advance