I bought and sold Proshare ETF UCO in 2020. 1099-B from broker showing Proceeds $596 and a $6200 in Noncovered short-term loss (report on form 8949 part 1 with box B checked). But later I also received a Schedule K-1 from Proshare showing:
Part II Current year income loss: -6133; Withdraw & distributions: (717)
Part III 8 Net short-term capital gain (loss): -6006; 11 Other income (loss): -125
Question: I already entered 1099B info from my brokerage in my TurboTax return. Do I need to enter the Schedule K-1 info in TurboTax also? I tried to also input information from Schedule K-1 from Proshare, it seems double counted. Now in addition to what the loss I have from 1099-B, I also have a loss carryover to future years. Is this correct? My TurboTax also shows Contracts and Straddles with a loss of -700. What are "Contracts and Straddles?"
When it comes to partnerships (partnerships issue K-1s) the "cost or other basis" reported on a 1099-B from your broker is wrong: your basis is determined from the K-1, and the broker doesn't see that. That's why the broker typically doesn't report the cost to the IRS.
You have to enter the K-1. And you have to use the information provided on the K-1 to determine the correct basis to use on the 1099-B.
Finally, its very easy in TT to double-report the sale. You've imported the 1099-B, which reports it. And if you enter the sale information into the K-1 interview, it will create a second 1099-B. Different people recommend different ways to work around this. My approach is to enter 0's on the K-1 sales screen (assuming you have no Ordinary Gain reported on your K-1 sales schedule) and make the basis adjustment directly on the broker-provided 1099-B. Below is a longer thread on avoiding K-1 / 1099-B double-counting.
Is Schedule K-1 provided to IRS also? Do I need to attach a copy of K-1 to my tax filing?