@JamesChen You're confusing 1) what the partnership does and 2) what you do with the partnership.
You can buy or sell shares of the partnership. Those actions are taxed as normal long or short term, governed by the dates you buy and sell.
The partnership itself can be in all sorts of different businesses. They can rent yachts. They can drill for oil. They can day-trade 24x7. Whatever business they're in, they generate taxable events, which are passed to you on the K-1. Line 11C is telling you that USO spent some of its time trading.
The only interaction between the two areas are how it impacts basis (i.e., when the partnership tells you to pay a bunch of tax on something, but doesn't give you any cash, that will increase your basis).
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
