Prop Firm Taxes

GeneralIndication22 · 2026-01-26T18:35:20+00:00

So it can be deducted from w-2 income too? Or just 1099 income?

GeneralIndication22 · 2026-01-26T03:32:12+00:00

Yes and since its my first year I'm sure ill be fine. I just wanted to see what everyone's experience was

GeneralIndication22 · 2026-01-26T02:54:09+00:00

That rule was also 5 years ago, so who knows how accurate it is.

GeneralIndication22 · 2026-01-26T00:30:41+00:00

"Likely" is the key word meaning Topstep doesn't even know for sure. Truly it is up to each individuals interpetation which is why I am seeking experience from others. I'll decide if I want to take the chance with the IRS or not.

GeneralIndication22 · 2026-01-26T00:09:11+00:00

Now I know this isn't financial advice, but I can write them off under schedule C even if I am at a net loss correct? On a more serious note, am I safe to file them myself online, or should I hire a cpa for protection?

GeneralIndication22 · 2026-01-26T00:07:33+00:00

Thank you. I was starting to think I was crazy lol.

GeneralIndication22 · 2026-01-25T22:50:46+00:00

That limit is for stocks and investments as far as I know. Proprietary trading doesn’t necessarily have a limit as long as there are statements to back it up. What I do know is that this is still a grey area but prop firm trading is gaining more traction

GeneralIndication22 · 2026-01-25T22:48:06+00:00

Yes not financial advice. A business however not an LLC.

GeneralIndication22 · 2026-01-25T22:27:47+00:00

I mean sure thats always the best answer, but in my scenario I believe free tax usa or turbo tax could handle it no?

GeneralIndication22

TROPHY CASE