Stock Markets Exposed
Tax forms for stock trading?
I am going to take an account with an LLC for stock trading (my friend does trading with this LLC and he is going to help me to set up). They will send me a K1 form at the end of the year for filing tax (like a partnership tax form i guess). My question is is it same form you get with any discount broker? for example scottrade. Do they provide the same K1 form at the end of the year. Or is it a different form? I am asking this because i am not a US citizens and i have restrictions on the incomes that i can make with certain companies.. Thanks in advance for the help Nick
Public Comments
- Your broker will issue Form 1099-B to your LLC, and the LLC will allocate your share of gains/losses on your Form K-1. Form K-1 should be all you need to complete your tax filings. Brad K. http://www.taxcpadirect.com
- It's different because you will invested in an LLC, which is very similar to a partnership... As the guy above me said, in an individual account with a broker... You will get a 1099-B, and probably a 1099-div and/or and 1099-INT... You will have to input each trade on schedule D... Along with your interest and divs on Schedule B. With your K-1, all stock trades have been input on the LLC return... WIth your K-1, you will only have a couple numbers to input, your net cap gain, your divs, and your interest income. You won't have to input individual stock transactions as you would if you had an individual account with a brokerage.
