Can K1 Trading losses offset W2 income

[Mister Fancypants]

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]

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]

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