Proshares UVXY K-1 and 1099-B

C

cz168

Hi, Friends,

I traded a few Proshares UVXY shares resulting a loss last year, without knowing a K-1 is needed for tax purposes :(

I never received a K-1 so I called proshares today and they manually generated one over the phone. When I get the emailed form K-1(1065), everything is 0. Capital gain/loss in box 8, 9 are 0. In box 11, there is "C" and the amount is 0, in box 13, there is a "K" and the amount is also 0.

So, I put all these numbers into my HRBlock, it did not change anything AT ALL. I checked the documents generated by HRBlock, there is NOT a single extra form, or even an extra line indicating that a form schedule K-1 was used.

Note that I did log the trading loss in 1099-B via form 8849.

I am wondering does this sound correct? How does IRS know that I have included the K-1 in my computation in this case??

Please advise!

Thanks,
-Charly
 
Yes I got the same form in the mail too. What is a K-1? What does it do? I have never seen this tax form before and just like OP, all the boxes have value of 0 in it. I am already reporting my trades as a part of the calculation for my capital gains/losses. What do I do with these K-1 forms?

Thanks
 
I have to say before I provide my opinion, that I 'm not a tax expert and you should consult one. That said, I would ignore the K1 that was empty and report my trades on Schedule D unless it is a business account. I'm not familiar with the 8849. The Schedule D should match your 1099-B.
 
Robert Morse said:
I have to say before I provide my opinion, that I 'm not a tax expert and you should consult one. That said, I would ignore the K1 that was empty and report my trades on Schedule D unless it is a business account. I'm not familiar with the 8849. The Schedule D should match your 1099-B.
More...


Thank you for your advise! I guess I don't have another choice.
 
cz168 said:
Hi, Friends,

I traded a few Proshares UVXY shares resulting a loss last year, without knowing a K-1 is needed for tax purposes :(

I never received a K-1 so I called proshares today and they manually generated one over the phone. When I get the emailed form K-1(1065), everything is 0. Capital gain/loss in box 8, 9 are 0. In box 11, there is "C" and the amount is 0, in box 13, there is a "K" and the amount is also 0.

So, I put all these numbers into my HRBlock, it did not change anything AT ALL. I checked the documents generated by HRBlock, there is NOT a single extra form, or even an extra line indicating that a form schedule K-1 was used.

Note that I did log the trading loss in 1099-B via form 8849.

I am wondering does this sound correct? How does IRS know that I have included the K-1 in my computation in this case??

Please advise!

Thanks,
-Charly
More...

I am not a tax expert, but I have my opinions:

If all the entries are 0s, you can effectively ignore the K-1. HR Block should generate a Schedule E on your return even if you enter a 0 K-1. But the Schedule E will be all 0s.

For K-1s with non-zero values, read https://www.elitetrader.com/et/threads/svxy-k-1-and-turbotax.288843/
 
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