Author Topic: Can K1 Trading losses offset W2 income  (Read 2557 times)

Mister Fancypants

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Can K1 Trading losses offset W2 income
« on: February 07, 2014, 02:37:59 PM »
Are there any accountants on the forums who might know the answer to this?

If you have an LLC with trading losses, can thoses losses offset W2 income like Schedule C losses or do they only offset investing losses and carry forward to future years beyond $3k?

Thanks,
-Mister Fancypants

Cheddar Stacker

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Re: Can K1 Trading losses offset W2 income
« Reply #1 on: February 11, 2014, 04:05:05 PM »
If by trading losses you mean capital losses from investments, they carry onto your Schedule D, which will net with all other capital losses/gains and flow to page 1 of the 1040 - Line 13 for 2013.

Mister Fancypants

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Re: Can K1 Trading losses offset W2 income
« Reply #2 on: February 12, 2014, 06:12:18 AM »
The LLC was a failed experiment in options trading that was under capitalized and poorly timed around the government shutdown.

Too much gamma vs theta kicked my ass :/

So the losses are trading losses but I am not sure if the entity traded enough to be considered a business and treat it as an operating loss.

About 114 trades in 8 months.

I'm closing out the entity as a failed experiment

I am waitng on the accountant but want 2nd opinions.

Thanks,
-Mister Fancypants