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I am thinking of using some S-Corp assets to trade futures this year. If this activity were to generate let's say 100K of profit, and the other corporate activities also generate 100K of revenue, are there any issues tax-wise I need to be concerned about?

Can I deduct normal business expenses from the straddles (which are taxed as short term capital gains) profit?

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If this activity were to generate let's say 100K of profit, and the other corporate activities also generate 100K of revenue, are there any issues tax-wise I need to be concerned about?

Yes. Having 25% or more of passive income in 3 consecutive years will invalidate your S-Corp status and you'll revert to C-Corp.

Can I deduct normal business expenses from the straddles (which are taxed as short term capital gains) profit?

I don't believe you can. You can deduct investment expenses from the investment income. On your individual tax return it will balance out, but you cannot mix types of income/expense on the corporate return or K-1.

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