Hi,
I received a K-1 from Proshares VIX (a fund that allows me to short-sale the SP500). The K-1 lists an income of X dollars, but it appears from the instruction that I should not report the K-1 but rather adjust my cost basis from the purchase and sale of the fund.
However, though the K-1 lists the X dollars as income, the sale adjustment asks me to raise my cost basis by X dollars, which would actually lower my capital gains and lower my taxes.
It doesn't seem logical. Any help would be much appreciated.
