If you're a trader at a prop shop and receive a base and a piece of your PnL , how is the pay from your PnL taxed? Is it taxed as earned income or capital gains?
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Depends on how smart your prop shop's tax lawyer is. But yes, if you are trading 60/40 commodities and get a percentage of the P&L, you could theoretically be getting part of your pay in LTCG and no social security tax.
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