Schedule K-1 box11 "contracts and straddles"

[dwalg2006]

Hope to get advice for ETF stock "USO" schedule K-1 box 11, really appreciated if anyone can help.

When I see my uso schedule K-1, the box 11 shows “contracts and straddle” income of about $8000. I don't know what it is. I made several USO  buys and sales (7000sh) in 2019, total gain of $1,300 (if add 2018 wash sale loss, the 2019 total should be a loss), however I am facing a big tax on this $8,000 "contracts and straddles income". I don't see any of this on my 1099-B, I have no idea where the money came from and went to. 

I am wondering if there is an error in the box 11. I consulted my tax advisor, he also said it seemed too high and told me to call the USO fund. When I called the call center, they told me they could only verify the “ownership schedule”, not specific K-1 numbers. So is this the normal USO tax consequence? I mean  don't see money but need to pay tax? I am very frustrated with the USO K-1.   Thank you very much if you can offer an advice.

[MarilynG1 · Accepted solution]

Add this income to the cost basis of your USO and adjust the cost basis when you sell these shares.

Click this link for info on USO K-1 Income.

[dwalg2006]

Thank you so much for your help! So I'll have a chance to offset the tax from the so called "income" when I sell the shares.  It is a lesson that ETF like USO is very tricky. 

Thanks again!

[dwalg2006]

Thank you for your previous assistance! 

I want to make sure if I have to file USO partner K-1.  IRS form 1065 instruction "purpose of schedule k-1" is read : "The partnership uses Schedule K-1 to report your share of the partnership's income, deductions, credits, etc. Keep it for your records. Do not file it with your tax return unless you are specifically required to do so. (See the instructions for Code O. Backup withholding, later.) The partnership files a copy of Schedule K-1 (Form 1065) with the IRS."

I  don't see code "O" in any of my k-1 boxes, how can I know I am specifically required to do file?  or USO partner  have to file, no exception?

I appreciate your further help!

Don

[dwalg2006]

Thank you for your previous assistance! 

I want to make sure if I have to file USO partner K-1.  IRS form 1065 instruction "purpose of schedule k-1" is read : "The partnership uses Schedule K-1 to report your share of the partnership's income, deductions, credits, etc. Keep it for your records. Do not file it with your tax return unless you are specifically required to do so. (See the instructions for Code O. Backup withholding, later.) The partnership files a copy of Schedule K-1 (Form 1065) with the IRS."

I  don't see code "O" in any of my k-1 boxes, how can I know I am specifically required to do file?  or USO partner  have to file, no exception?

I appreciate your further help!

Don

[tadada]

@MarilynG1  and @dwalg2006 -- I am in a similar situation and have a loss of $603 in my schedule k-1, can you please confirm if I still need to file schedule k-1 in TurboTax? I see my transactions already listed in form 1099 that I got from Robinhood. 

On this IRS instructions page (Purpose of Schedule K-1), it is mentioned that we don't need to file schedule K-1, so it is confusing. It would help if you can please answer it.