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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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hi Lev, I found your comments to the enquiry "I trade stock

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hi Lev,

I found your comments to the enquiry "I trade stock options and futures through an LLC in Washington" 3 years ago extremely helpful.. My understanding is the LLC ran by multiple partners and is managing investments of the partners with no other financial activities (i.e. not a financial institution) is still not subject to B&O taxes on investment incomes.. However, I saw some discussions that WA state is proposing B&O on investment incomes (interest, dividends, net capital gains) earned by non-financial institutions.. Do you know what the current status is? Many thanks in advance for your help.
Jaeik

Hello,

I'm Lindie, and I’m a moderator for this topic. I sent your requested professional a message to follow up with you here, when they are back online.

If I can help further, please let me know. Thank you for your continued patience.

Best,

Lindie

Hi and welcome to our site!
You are correct - the proposal was made to extend the state’s B&O tax to unearned income over certain limit received by Washington residents and businesses.
That proposal included income derived from investments regardless if earned directly by individuals or via the LLC.
See details here -
http://dor.wa.gov/Docs/Pubs/RevenueOptions/1.pdf
Here is the actual HB as proposed -
http://apps.leg.wa.gov/billinfo/summary.aspx?year=2009&bill=3191
That proposal was never accepted.
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience: Taxes, Immigration, Labor Relations
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