@joeygamb
So will TT put all the K-1 info in the correct spot, be it Form 6781 or wherever? I think I read that on the form K-1 that box 11c will go there, but I just don't know for sure, and will TT know to put it there?
When it comes to partnerships and TT, "Trust but verify" is the best approach advice. You should be working with a version that allows 'Forms' mode, so you can see exactly what is showing up where. For something like 11c, it should go through to 6781 with no problem. But there are other less common codes that TT won't handle (e.g., 13K)
I'm using 3rd party software (Tradelog) to sort and input all my stock trades. So should I go into Tradelog and adjust my cost basis on my USO to 0, which is what I think you are saying, which will give me a capital gain of $4220 there? (I just want to make sure TT is not doing that adjustment somewhere by itself that I don't know about)
I'm not familiar with Tradelog, but the important point is that your cost basis on that trade is $0. As long as TT shows a $4220 cap gain, how you get it there isn't important (I adjust the 1099-B inside TT). And the concern about TT adjusting your 1099-B elsewhere is avoided by following the thread I included on one of the earlier posts on this thread (basically, don't let the K-1 interview create any 1099-B entries.
Then that will be offset by a $4220 loss somewhere else on the tax return. And then what happens to the extra $1,163? You're saying that is taken care of and basically disappears when I uncheck the "All my investment is at risk" box?
If you look carefully at the forms, you'll see $2 of Int and $1 of Div show up on Sched B, along with the the $4 deduction from 13W showing up somewhere. But the straddle on form 6781 won't be the full $5,382. It will be reduced to reflect that your investment was only $4,220. That reduction is going to be worked out on for 6198 when you uncheck the box. But you'll want to verify the mechanics to make sure that everything works (I'm not aware of any problems, but I add this caution only because I haven't personally had to do this). As to the extra $1,163, it vanishes when you fully exit the partnership.
Also, if the K-1 loss does go to 6781 which gives the 60/40 tax treatment, will that matter when trying to match the short term loss from the 1099B adjustment?
As described, you're going to wind up with a short term gain which is offset by a 60/40 long/short loss. I'm not familiar with the tax treatment of straddles in a partnership, so don't know if there's any other allowed adjustments to address that mismatch.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
