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abert8722
Level 2

How do I properly report gains / losses for an ETF structured as a Limited Partnership where shares were bought

Based on the research I've done the proper way is as follows:

- When you import your broker 1099 statement into TT, it will automatically fill out the sales and cost price entries for your trade(s), however the K-1 that you have received includes a "worksheet" with the instructions so that you can adjust your cost basis for your original trades. Doing this will incorporate any additional profits / losses the company incurred during the timeframe that was passed through to you as the unitholder. This is the part I understand.

-The real question is what do you do regarding the K-1 filing section? This part ALSO has a section where you fill out your Sales and Cost basis prices - if you fill it out here then you will be double-stating your profits or losses. I've seen elsewhere that you should just state your sales proceeds and cost basis on the K-1 section as 0 since you have already captured all this in your adjusted cost basis on your 1099.

1 - Is this correct?
2 - If No, then what is the proper way?

Thanks in advance!
2 Replies
abert8722
Level 2

How do I properly report gains / losses for an ETF structured as a Limited Partnership where shares were bought

The title question was cut off:

 

How do I properly report gains / losses for an ETF structured as a Limited Partnership where shares were bought and sold in the same tax year and therefore the transactions all reported on your broker 1099 statement?

KathrynG3
Employee Tax Expert

How do I properly report gains / losses for an ETF structured as a Limited Partnership where shares were bought

You are correct. Use the K-1 to report the correct transaction details.

 

Regarding what was imported and now on Schedule D, adjust the cost basis to match the sales proceeds. This will bring the gain/loss reported to zero on Schedule D so that the tax is only paid once from the Schedule K-1 input.

 

This way, you will match the IRS forms as received.

 

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