Learn · Trader taxes
Trader taxes for funded traders
Prop-firm payouts are taxed differently from the capital gains most traders expect — usually as self-employment income, with no withholding. These four guides explain the mechanics in plain English, cited to the IRS, so you walk into your CPA's office already knowing the questions.
How prop firm payouts are taxed (US)
Prop-firm payouts are usually self-employment income reported on a 1099-NEC — not capital gains. A plain-English, IRS-cited walkthrough of what that means for a funded trader.
8 min read · reviewed 2026-07-14
Are eval fees a business expense?
Evaluation fees, resets and data feeds are costs traders commonly discuss with their CPA. What the IRS 'ordinary and necessary' standard is — and why 'deductible' is a question, not an answer.
7 min read · reviewed 2026-07-14
Quarterly estimated taxes for funded traders
Funded-trader payouts arrive with no tax withheld, so the IRS expects quarterly estimated payments. The public 1040-ES facts — who pays, the four due dates, and how to keep the record.
7 min read · reviewed 2026-07-14
Prop trading business setups traders ask CPAs about
S-corp, LLC, trader tax status, mark-to-market — the business-structure questions funded traders raise with CPAs, explained as questions, with IRS sources. No recommendations.
8 min read · reviewed 2026-07-14
The TradersGuild Eval Ledger keeps a running record of payouts received and eval fees paid, and its Tax Season Export hands your CPA a clean, dated tax-year summary — a bookkeeping record, not a tax calculation.
This is educational bookkeeping information, not tax advice. TradersGuild is not a CPA or tax preparer — every trader's situation differs, so confirm anything here with a qualified tax professional before you act on it.