How to report / adjust the never-received K-1 income for trading UVIX ETF ?

[JohnZ1111]

I traded UVIX ETF in 2024 and all my buy/sell transactions are reported on my 1099-B from Charles Schwab. All of sudden I received another K-1 from Tax Package Support for this UVIX with some huge other income amount on it. The only thing I can match up K-1 with my 1099-B are the transactions dates and shares I bought/sold in 2024, but the cost base and gain are different from 1099-B and don't understand how they come up those numbers. 

The most important thing is I never received ANY INCOME from UVIX ETF other than just traded it few times during year which reported on the 1099-B already.

1)- First, am I reporting the same income on 1099-B and K-1 for the UVIX trading ?

2)- How do I adjust the cost base of UVIX trading ? Please help with the detail steps in TT of how to ...

Please kindly help and thank you very much in advance.

John Z.

[PatriciaV]

ProShares Ultra VIX Short-Term Futures ETF (UVXY) is a publicly traded partnership (PTP), which requires special handling on your tax return. Plus, you may also be subject to the wash sale rules. Due to the complexity of reporting this activity, you may wish to obtain the services of a local tax professional with knowledge of PTP transactions.

If you choose to enter this yourself, see: How do I report the sale of Publicly Traded Partnerships (PTPs) or Master Limited Partnerships (MLPs...

[JohnZ1111]

Thank you very much, PatriciaV,

Good you replied back to my post, I lost the track of my own post and couldn't find it on Forum anywhere until you replied. I book marked the post this time.

I have been doing a lot studing on this PTP K-1 filing and I think almost there. Just want to understand why I am getting different tax results with the following cost adjustments:

1)- If I use the K-1 cumulative adjust basis ( K-1 sales transaction schedule colume #6 ) to add on to my original trading transaction cost, use this as the adjusted cost basis for each transaction, I am getting tasx result #1.

2)- If I just use the K-1 Cost Basis ( Transaction schedule #7 ) as the adjusted adjusted cost basis for each transaction, I am getting tax result #2. 

Tax #2 is lower than tax #1, which I thought they should be the same or very close. But anyway, which way is the correct way to use to be my adjusted cost basis for UVIX transaction then ?

Please kindly advise and thank you very much in advance.

Best,

JohnZ

[PatriciaV]

The cumulated adjusted basis from the Schedule K-1 worksheet is the correct basis to report. 

The Cost Basis may not include all historical activity for your investment. 

If you need more help understanding how the adjusted basis was calculated, contact the company per the information provided with the K-1 packet.