K-1 income and 1099-B income

[jim1720]

I bought some UCO shares in 2020 and sold them 2022.  In 2020 and 2021, I reported loss and gain based on information in K-1 and paid additional tax accordingly. 

In 2022,  I received both K-1 and 1099-B. 1099-B has cost base (the price that I paid) reported to IRS.  Since I never actually received any money from UCO,  is it reasonable to think that the capital gains that I "accumulated" in 2020-2022 should be the base of my cost? What is the proper way in tax filing? 

Thanks for your help.

[MonikaK1]

Certain investment products, including Commodity ETFs, are structured to operate as partnerships. They issue a Schedule K-1 to each partner (i.e., investor) to report their share of income, gains, losses, deductions, or of any other taxable event.

Enter the information from the K-1 in TurboTax. See this TurboTax tips article for more information on Schedule K-1, and this one for help with entering the K-1 in TurboTax. Check to see that the "Final K-1" box is checked at the top of the document. Use the sales schedule information provided with the K-1 for information needed to report the sale. Basis calculations should be included.

Mark the box for Complete Disposition in TurboTax if you disposed of all of your shares.

If the same sale was also reported on a Form 1099-B, then adjust the sale price and basis that you enter in the K-1 section so that they are not reported twice.

See this TurboTax article for more information on reporting forms for investment income.

See also this thread for another discussion of this issue.

[Mike9241]

UCO is a publicly traded partnership. as part of the K-1 package you should have received a supplemental schedule that will allow you to compute your tax basis.  as you realize the broker is showing what you paid to buy it. that does not reflect the activity profit/loss/distributions which affect your tax basis.