If an individual trades their own capital, then they are subject to capital gains tax on their profits. In prop trading, you will be trading the firm’s capital, typically accessed from a sub-trading account within the firm. Smart Prop Trader doesn't provide a Form 1099, and it's the customer's responsibility to consult with a local tax professional regarding any capital gains accrued for the previous tax year for filing your annual taxes. It is important for prop traders to understand their tax obligations, as failure to comply could result in costly penalties. We recommend consulting with a local tax advisor for any questions or concerns as it pertains to filing your taxes.