USO k-1 issues

[fusiforme]

I'm using Turbotax and currently trying to figure out the USO k-1 and I'm totally lost.

IB has left all of the cost basis boxes blank for me to fill in myself, but I don't know if I should be entering the cost basis from my 1099 or not.

I'm confused about lot amounts too. The documents USO sent me show lot amounts according to the reverse split amounts, whereas Interactive Brokers reports all transactions with the amounts of shares before the split. But even if I add up all the purchase prices reported on the USO sales schedule, I only get a number around half the amount of the total purchase prices on my 1099. Also the lot amounts shown on the USO schedule don't tally with the amounts shown on my IB statement.

is there anyone else who traded USO in 2020 who can help me figure this out?

I have an overall loss on USO for 2020, so do I even need to bother with the k-1?

 

[athlonmank8]

I had a loss and calculated it the same as a stock. Those K1's are a mess. I did my taxes by hand though. Not sure if you can do that in TT

 

[ph1l]

I have an overall loss on USO for 2020, so do I even need to bother with the k-1?

If you owned USO in a tax-deferred account like a 401k or IRA, you wouldn't need to do anything unless the K-1 has unrelated business taxable income (UBTI). USO probably has no UBTI according to https://www.fool.com/investing/2020/05/02/uso-investors-get-ready-for-this-huge-hassle.aspx

Otherwise, you should account for it, because your losses might lower your income tax. And not accounting for it might look suspicious to the IRS.

After owning shares in an energy MLP some years ago, the complexity of dealing with the K-1s made me vow to never hold anything that results in a K-1 again except for ETFs in an IRA.

 

[fusiforme]

Thanks for your replies.

Fortunately I think I have been able to figure out how to report the transactions using Turbotax.

For whatever reason - and this is what was confusing me at first - although USO lists all of my purchases and sales under "transactions," it only lists 4 groups on the "sales schedule" - which is the data used for the k-1.

There are 4 more groups on my IB statement, which are also accounted for USO on the transaction list, but not on the sales schedule.

I have no idea why USO did not include these on the sales schedule, but I am going to assume they know what they are doing, because I certainly don't!

I simply accounted for the 4 they list on the sales schedule through the k-1, and then inputed the cost basis for the other 4 using the amounts on my IB statement.