Futures contracts 1099-B for LLC

[aandy]

I received a 1099-B from my futures broker for my LLC ( i trade under an sole proprietorship LLC with its own EIN )

Now i want to report that on my tax return. 

I understand how to get to form 6781 for Contracts and Straddles, but there It allows me to choose to report that under my name only, when instead i want this to be under my LLC, as I purposely opened an LLC for this business.

How do I do this? Self-employment income? 
Thank you!

[Mike9241]

there is no option on the 6781 to use the LLCs name.  you could override it but that would prevent e-filing.

under the tax laws a single-member LLC is a disregarded entity. That's why the activity is reported directly on your 1040 rather than through some other type of tax return. 

Only if you are an options or commodities dealer would the net gains be subject to self-employment tax (IRC 1402(i).

(A) Options dealer The term “options dealer” has the meaning given such term by section 1256(g)(8).

The term “options dealer” means any person registered with an appropriate national securities exchange as a market maker or specialist in listed options.

or persons trading in other markets
In any case in which the Secretary makes a determination under subparagraph (C) of paragraph (7) of Sec 1256, the term “options dealer” also includes any person whom the Secretary determines performs functions similar to the persons described in subparagraph (A). Such determinations shall be made to the extent appropriate to carry out the purposes of this section.

(B) Commodities dealer The term “commodities dealer” means a person who is actively engaged in trading section 1256 contracts and is registered with a domestic board of trade which is designated as a contract market by the Commodities Futures Trading Commission.

if you are a trader or dealer then your trading expenses would be reported on Schedule C where you could enter the LLCs name and EIN. if you're an investor your trading expenses are not deductible for federal purposes through 2025.

don't know what you think using the LLCs name and EIN gains you for income tax purposes. 

[aandy]

Thank you,

by overriding it you mean paper filing and inserting the LLC name and EIN in Name(s) shown on tax return and Identifying number?

If to do that, would I need to report that on a Schedule C as well?

I'm just concern because on the 1099-B the name reported is the LLC name.
But if you say that it doesn't matter because is single member LLC than I can just file the 6781 with my name and SSN ?

Thank you

[Rick19744 · Accepted solution]

I would not recommend that you use the LLC EIN on form 6781; which would require an override.

This would most likely cause confusion at the IRS with it being attached to your 1040.

As was noted, a single-member LLC is considered a disregarded entity and all activity is reported on your individual tax return.  Use your SS# and name on the form 6781.

I would not worry about the 1099-B being reported with the LLC EIN.  Should you ever get a notice, this can easily be explained in a reply to the IRS.