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Quick question, if I do get funded (looking likely that I will), can I claim my profits as long-term capital gains if it's from a prop firm? Or do I only get that benefit if I'm trading with my own private account?
Thank you!
Can you help answer these questions from other members on NexusFi?
This question really should be asked in the TopStep official thread, so I am going to close this thread and direct you to that one for the official answer.
But since it's already been asked and answered before, here's your answer ( ):
Basically, it's self-employed income and not eligible for the 60% capital gains/40% ordinary income split. It's just all ordinary income.
I'm not TopstepTrader, who probably will answer as well, but it has been answered, I think a few times (the thread is long and hard to read, so it's no surprise that it wasn't easy to find.)
You as a trader would be an independent contractor, …
Note that I am not a representative of TopStep nor a tax professional, and I believe this is correct but you should contact your tax professional. And for that matter, TopStep. (I'm sure they will tell you to consult your tax professional, but they can confirm that you are paid as an independent contractor.)
Also, this is how TopStep does it. Other firms may differ.
Now this thread is closed. You can go over and get an official answer from them.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote