SVXY k-1 and Turbotax

[pj2501]

You might try and see if Tax Package Support will e-mail you your K-1s that you should have received for SVXY since 2012. Then you will have an accurate idea of the numbers you should have reported on your tax return every year since 2012. Note that just because you had a large gain in SVXY from 2012 on (until this year), does not have anything to do with the partnership activities that are passed on to you. The values of the boxes on your K-1s are based solely on the number of shares of SVXY you held when the parternship activites are distributed. Assuming the partnership activities reported positive income to you over the years, then your cost basis will increase by the same amount so when you finally do sell SVXY, you can realize a bigger loss.

As for when you should realize your loss, that is something that only you can decide.

Good luck and note that Volpocalypse can happen again. I wouldn't touch a product like SVXY.

Thanks again for the free explanation. Yes should of sold JAN of 2018. Perfect case of too much of a good thing. I'm very torn on holding this through this year, but after the crash instincts were to double down. Then SVXY went to half leverage of 0.5x which has hindered those plans yet again. If nobody minds I'll post the outcome of this tax year.

 

[sprstpd]

Thanks again for the free explanation. Yes should of sold JAN of 2018. Perfect case of too much of a good thing. I'm very torn on holding this through this year, but after the crash instincts were to double down. Then SVXY went to half leverage of 0.5x which has hindered those plans yet again. If nobody minds I'll post the outcome of this tax year.

Yes, keep us updated of what happens with your situation. I'm sure other people would benefit from the information.

 

[Bagels]

Hi,

I have read the entire thread and I am still having an issue with entering my SVXY K-1.

I am using TurboTax and I have imported my 2017 1099 from E Trade. There were two trades related to SVXY in 2017. 1. Sale of 200 shares at $79 on 6/15. 2. Expiration or forced sale of a $79 covered call on my 200 shares. The covered call sale was simple enough and did not need to adjust -shows loss of $3,042. The sale of the 200 shares did not have a cost basis associated with it from E*Trade but I knew when and how much I paid for the shares (Proceeds - $15,779.66; Cost Basis - $13,631.47)

I got my K-1 the other day and it has the following amounts in the below boxes:

Box 5 - $81
Box 11C - $12,683
Box 13K - $133

Box L:
Beginning capital account - $19,959
Capital contributed during year - $0
Current year increase (decrease) - $12,631
Withdrawals and distributions - (32,590)

Now comes my confusion with the 2017 Sales Schedule

Units Disposed Acquisition Date Disposition Date Cumulative Adjustment to tax basis
200 11-25-2014 06-15-2017 $8,971
100 12-11-2014 06-15-2017 $4,879
100 01-05-2015 06-15-2017 $5,111

This does not equal the 12,631

But if I say the cumulative adj tax basis is correct (18,961) - where is that added on my tax return? Do I create a completely separate tax row for it or do I add it to the basis I updated from E*Trade (13,631.47 + 18,961 = 32,592 - which does equal the withdrawal amount).

One more note and that is in 2016 I had a $5,766 gain on contracts and straddles and I show a current gain of $9,641 (12,631 - 3,042) in 2017.

Any assistance is much appreciated and thank you in advance.

 

[pj2501]

Yes, keep us updated of what happens with your situation. I'm sure other people would benefit from the information.

Went to see my tax pro today and i'm more confused than when I went in.

Said i'll have to pay long term gains on "box 11 C" for the forms and that's paying on over +$100,000. I've never cashed out just it's not there anymore in the fund since Feb5 2018 which is worth less than 10k.
Also said the only thing I can do to decrease the amount I pay tax on is my cost basis of my purchased shares if I knew what they were and how much paid for them. I'm digging through records back to 2012 to see if any brokerage shows the purchase pricing for the shares at that time.

This still doesn't sound right to me i'm trying to seek advice and want to get a hold of someone else. I could be wrong and this is why you don't hold this fund for this length of time? Ah I could have some words with my old broker.

 

[Bagels]

I found this on youtube. I thought it was a good explanation

 

[pj2501]

I found this on youtube. I thought it was a good explanation

Hmm based off that my cost basis is over 80k washing out quite a bit. I feel bad but going to send this vid to my tax place not to insult their intelligence but to help shed some light.

 

[pj2501]

I found this on youtube. I thought it was a good explanation

If this works send me your address so can send beer.

 

[gol123]

I received my 1065 k-1 from svxy, and all of the 11c, 13k, and current year increase are 0. based on my 1099b, l had 1k loss on svxy. Do I need to report my 1065? Can I just report the total loss based on my 1099b on form 8949?

 

[sprstpd]

I received my 1065 k-1 from svxy, and all of the 11c, 13k, and current year increase are 0. based on my 1099b, l had 1k loss on svxy. Do I need to report my 1065? Can I just report the total loss based on my 1099b on form 8949?

Again, not a tax expert but if your K-1 has no tax implications for you at all (i.e., all the boxes are 0 in Part III, Lines 1-20), you can ignore it.

 

[sprstpd]

Hi,

I have read the entire thread and I am still having an issue with entering my SVXY K-1.

I am using TurboTax and I have imported my 2017 1099 from E Trade. There were two trades related to SVXY in 2017. 1. Sale of 200 shares at $79 on 6/15. 2. Expiration or forced sale of a $79 covered call on my 200 shares. The covered call sale was simple enough and did not need to adjust -shows loss of $3,042. The sale of the 200 shares did not have a cost basis associated with it from E*Trade but I knew when and how much I paid for the shares (Proceeds - $15,779.66; Cost Basis - $13,631.47)

I got my K-1 the other day and it has the following amounts in the below boxes:

Box 5 - $81
Box 11C - $12,683
Box 13K - $133

Box L:
Beginning capital account - $19,959
Capital contributed during year - $0
Current year increase (decrease) - $12,631
Withdrawals and distributions - (32,590)

Now comes my confusion with the 2017 Sales Schedule

Units Disposed Acquisition Date Disposition Date Cumulative Adjustment to tax basis
200 11-25-2014 06-15-2017 $8,971
100 12-11-2014 06-15-2017 $4,879
100 01-05-2015 06-15-2017 $5,111

This does not equal the 12,631

But if I say the cumulative adj tax basis is correct (18,961) - where is that added on my tax return? Do I create a completely separate tax row for it or do I add it to the basis I updated from E*Trade (13,631.47 + 18,961 = 32,592 - which does equal the withdrawal amount).

One more note and that is in 2016 I had a $5,766 gain on contracts and straddles and I show a current gain of $9,641 (12,631 - 3,042) in 2017.

Any assistance is much appreciated and thank you in advance.

Not a tax expert, but since you held the security from 2014 (and part of it from 2015), this means that you should have already received K-1s for 2014, 2015, 2016, and now 2017. Each year you should have paid taxes on the partnership activities for that year and then adjusted your cost basis accordingly. As for why the numbers do not match, without actually looking at your K-1s I would just be speculating.

If you want, make a copy of your K-1, cross out all sensitive info, and then private message me the document. Then I can take a look at it.