Help filing final K-1 form due to trading UVXY ETF in 2024

Hi @Mike9241, Really appreciate the reply.

I marked your answer in RED, my updated follow up in GREEN. Original question is still in black.

At the very bottom, I included a couple images of my redacted schedule K-1 if this helps clarify (and hopefully help someone else in the future).

Here is my case.

1. When I filed my tax earlier this year, I had included the capital gains for UVXY that was part of form 1099B. I paid tax on this already.

the basis on the 1099-B is probably wrong (none of the partnership activity that affects your basis is recorded by the broker). you need to compute basis using the sales schedule provided by the partnership
This is the part I don't understand. How would I adjust this based on my UVXY 1099B sales and scheduled K-1 (images attached at the bottom.

2. got schedule K-1 (and K-3). Schedule K-1 was mailed to me but for some reasons, I saw schedule K-3 when I got an E-copy of K-1.

3. i entered the information on schedule K-1 and K-3 in Turbotax desktop. OK 

4. It appears to generate a copy 2 of form 8949 with the UVXY info (based on what I entered)This is marked with (C) short-term transactions not reported to you on Form 1099-B OK but see above as to tax basis 

5.  Form 6781 was also created to include the section 1256 contracts and straddles based on Schedule K-1 box 11 (C) Other Income (loss) OKAfter I entered all of the information on schedule K-1,

6. I noticed my money owe went up a few dollars IT HAPPENS IF THERE IS NET INCOME 

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Here are the details of what I did in Turbotax

1. Choose the Type of Partner 
   1. Selection: Limited Partner or Other LLC Member  USE WHAT'S ON THE K-1
      Yes, that's what I entered as. I was saying I selected "Limited Partner or Other LLC Member" option to match with the schedule K-1.
      
2. Type of partner 
   
   1. Selection: domestic partner SEE 1 BOLDED
3.  Percentage of your share
   
   1. Selection: didn't enter anything. This was where I had to enter Profit, loss, capital on beginning and ending columns
4.  enter your liability share
   
   1. Selection: didn't enter anything here as well. This is Nonrecourse, Qualified Nonresource, Recourse on beginning and ending columns.
5. Enter capital Account Information (basically matching row L in K-1 form)
   
   1. Opening capital account: 0
   2. capital contributed during 2024: 19,610
   3. current year net income (loss): 3061
   4. Other increase (decrease): 0
   5. withdrawls and distributions: -22,671
   6. ending capital account: 0 L FOR 3 THROUGH 5 A WASTE OF TIME BECAUSE TURBOTAX DOESN'T USE THESE NUMBERS AT ALL
      GOT IT. But it appears I still have to enter it in based on the questions in Turbotax.
      
6. Describe the partnership 
   
   1. Selection: selected both "This is a publicly traded partnership" and "this partnership ended in 2024"
7. Describe partnership disposal 
   
   1. Selection: Complete disposition
8.  Tell us about your sale
   
   1. Selection: Sold partnership Interest
9. Enter Sales Dates 
   
   1. Selection: The purchase time and sold time varied but I entered purchase date as the first day I entered the position and sale date as last date I sold the remaining shares.
   2. Let me know if this is correct? 6 THROUGH 9 OK 
10. Enter Sale Information  (there were 2 columns)
    
    1. Regular Gain or Loss Column
       1. Sales Price: 23,810 (this was a bit confusing to me but I ended up using the sale proceeds for UVXY in form 1099B)
       2. Selling Expense: left this blank
       3. Partnership Basics: 22,671 (I used the value on row L in form K-1)
       4. Ordinary Gain: left blank
       5. 1250 Gain: left blank (since box 9c on form K-1 was empty)
    2. AMT Gain or Loss
       1. Partnership Basis: 22,671
       2. Ordinary Gain: left blank
       3. 1250 GainL left blank 10 AND 11 IN THE SALES ECTION OF THE K-1 (NOT THE 8949) THE ONLY THING REPORTED HERE IS SECTION 751 GAIN. LINE 20AB OF K-1 IF PRESENT AND ITS ORDINARY. THIS IS DEPRECITION RECAPTURE. IT IS DOUBTFUL THAT THE PARTNERSHIP REPORTED ANY ON EITHER 20AB OR THE SALE SCHEDULE SO ALL YOU ENTER IS SALES PRICE 0 BASIS O ORDINARY GAIN 0
          I'm not clear on this one. Do you mean this?
          1. Re-enter 10.1 above as shown below
          
          1. Sales Price: 0
          2. Selling Expense: left this blank
          3. Partnership Basics: 0
          4. Ordinary Gain: 0
          5. 1250 Gain: left blank
             
             What about 10.2? should I enter 0 in the Partnership Basis box?
11. Review Investment Gain or Loss on Sale
    1. Shorter-term Gain (Loss): 1,139 on both columns "regular gain or loss" and "AMT Gain or loss"
    2. Long-Term Gain (Loss): both columns zero/ YOU HABE JUST DOUBLE REPORTED THE SALE. THIS IS TREATED AS A SEPARATE SALE FROM WHATS REPORTED ON THE 8949 AND WILL LIKLEY APPEAR ON FORM 8949 TYPE C SHORT-TERM SALES PROCEEDS AND BASIS NOT REPORTED TO THE IRS. THIS DUBLICATES WHAT SHOULD BE TYPE B ON THE 8949
       This was generated from TT after I entered the information from 10.1 and 10.2 above (before your suggestion but I'm not sure). 
       
12.  Choose Type of Activity
    
    1. Selection: Other
13. I checked the boxes that have an amount which were boxes 5, 8 (this is 0), 11 (with C designation), 13 (AE designation), 16 (checked marked), and 20 (with A and B designation)
14.  Enter info from boxes 4-7
    
    1. box 5: 45
    2. box 8: 0
    3. Box 11: C - sec. 1256 contracts and straddles: 3,026
    4. Box 13: AE - Deductions - portfolio Income: 
    5. JUST ENTER THE NUMEBERS THAT APPEAR IN THE BOXES IN PART III THROUGH LINE 18. LINE 19 ISN'T USED BY TURBOTAX
       Yes, all matching boxes were entered in TT
       
       1. Yes box 16 is checked
15. Proceeded to enter form K-3 in Turbotax YOUR ON YOUR OWN BUT IT PROBABLY DOESN'T MATTER SINCE THE FOREIGN TAX CREDIT IS ZERO
    I entered what TT mentioned which I thought was quite clear. Most of the field in my K-3 were empty.
16.  Enter gross income info
    
    1. Foreign Gross Income - gross income sourced at partner (column F): 3026
    2. foreign gross income - gross income from all sources (column G): 3,071
17.  Enter deduction info (I think this one is coming from box 13)
    
    1. Deduction allocated at individual level - interest expense (column F - sum of lines 39-43): 0
    2. Deduction allocated at individual level - Other (column F - line 54 minus sum of lines 39-43): 10
18. Enter foreign tax info 
    
    1. left all boxes empty
19.  Enter Income Detail (got to this page where TT pre-filled)
    1. Gross Income: 3,026 (total and US. source columns)
    2. Other expenses: 10 (total and US source columns)
20. Enter box 20 Info 
    
    1. A - Investment income: 45
    2. B - investment expenses: 10
21. Describe the partnership 
    
    1. Left it all blank but options were (sorry for typos, typing as fast as I can):
       1. I am required to pay supplmental business expenses on behalf of this partnership/llc for which I am not reimbursed
       2. i have passive inactivity losses carried over from last year
       3. all of my investment in this activity is at risk
       4. i have at-risk losses carrying over from 2023
       5. i personally paid health insurance and/or long-term care insurance preiums ofr. myself and for my family
       6. i have passive activitiy credits to claim from this publicly traded partnership (this is not common)

That's it and it went back to the summary page and I clicked Done. Let me know if I should include an image of part III of form K-1 in here for clarity.

Can someone help me verify if what I entered were correct?

As mentioned above, I saw form 6781 and 8949 (copy 2) generated (copy 1 has all my stock trades info). My tax owed went up a few bucks. I had already paid the UVXY capital gain when I filed earlier this year.

My 1099B for UVXY sale

Schedule K-1

Schedule K-1 Sales Schedule with supplement information.