Writing off expenses when you're at a prop firm?

P

profittaker

If you're a prop trader at a daytrading firm and receive a k-1 partnership return at tax time, how do you write off your business expenses since most if not all prop firm won't write them off on their LLC return? My prop firm also doesn't allow sub-llcs on prop accounts.

Thanks!
 
Of interest, including, "LLC members receive a Form K-1":

http://greencompany.com/EducationCenter/GTTRecTraTypPropTrade.shtml#matters


Others may also want to note:

"Important tax matters for proprietary traders
Some proprietary traders are treated as either independent contractors (who receive Form 1099-Misc),
others are LLC members (who receive Form K-1s) and still others are employees (who receive a W-2).
Proprietary traders need to understand their underlying agreements and utilize tax-wise strategies that
match their facts and circumstances. Not all proprietary traders and firms are alike and different tax
planning and reporting strategies are warranted."
 
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