Brokers that report UVXY and its options as Sec. 1256

[dcwriter2]

Used Schwab for the first time. They don't. Means more work for my accountant. What about the other brokers? IB? TS? Fidelity? Others?

 

[ajacobson]

K -1 reporting. Every broker. Are you expecting the answer to change from your previous queries? People tend to ask tax questions here, usually until they get the answer they want. You can read the prospectus you were supplied with or visit the sponsor site.

https://www.proshares.com/globalassets/fact-sheets/q4-2021-fact-sheets/prosharesfactsheetuvxy.pdf

 

[dcwriter2]

These are non-equity options. Many pros say that means they get Sec. 1256. I have heard some brokers agree. Just not sure which ones. Clear on the question, now?

 

[ajacobson]

1. They are 1256 contracts, but you don't own them.
2. You own shares of pool and get a K 1. You still benefit from the good/bad of 1256.
3. All owners get K 1s - it has nothing to do with the broker.
4. K 1s almost always arrive late - other than that they can be superior to direct ownership.
5. Much of the tax advice here is wrong.
6. Read the pdf that was attached.

https://www.proshares.com/globalassets/fact-sheets/q4-2021-fact-sheets/prosharesfactsheetuvxy.pdf

Direct quote from the pdf "Additional Information Daily holdings are fully transparent and available at ProShares.com UVXY is treated as a partnership for tax purposes and generates a K-1 tax form"







"

 

[dcwriter2]

Just a follow up. Interactive Brokers provides a Sec. 1256 Worksheet that INCLUDES UVXY OPTIONS! My accountant thanks you.