Taxes and Propping

R

RandyM85

I've heard some bad things about the rate you are taxed at if you become a partner at a LLC as a prop. I've heard things like you are taxed at the maximum bracket no matter what because the firm is taxed at the highest bracket. Is that how the K-1s work? Can someone explain this?

Thanks,
-RM
 
Quote from RandyM85:

I've heard some bad things about the rate you are taxed at if you become a partner at a LLC as a prop. I've heard things like you are taxed at the maximum bracket no matter what because the firm is taxed at the highest bracket. Is that how the K-1s work? Can someone explain this?

Thanks,
-RM
More...

(Legal disclaimer, sorry - This is Not tax advice, it is my personal opinion, not that of Bright Trading or any of it's affiliates).

You've been talking to the wrong people, probably someone trying to convince you that "trader status" is more valuable than trading (the right arrangement) as a professional.

We are all taxed on "triple net" - and totally exempt from FICA (Self Employment tax, 15% or so).....sounds pretty good to me.

All the best, feel free to call....

Don
 
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