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?
Trending Content - Sales and Trading Forum
| +14 | Natural Gas Analyst Path to Trader | 3 | 4d |
| +9 | looking for advice | 1 | 1d |
| +6 | Exiting Sell Side FI Trading | 1 | 6d |
| +6 | S&T Outlook and Pivot from Buy Side | 2 | 5d |
| +6 | EM Resources / Study Material | 1 | 4d |
| +6 | JPM Quant/Trading Base Salary in London? | 1 | 1d |
Career Resources
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.
Voluptas officia adipisci pariatur odit velit laudantium. Molestiae rem dolor aut atque. Impedit et quas illum nulla.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...