topic TurboTax said I sold investments other than stocks and bonds, but I didn't. in Deductions & credits

TurboTax said I sold investments other than stocks and bonds, but I didn't.

dleonard567 — Wed, 11 Feb 2026 10:49:06 GMT

TurboTax said I sold investments other than stocks and bonds, but I didn't.

So, I searched around, and found out it's from K-1, 100 shares of stock DBC. In K-1, line 11 C (Sec. 1256 contracts and straddles), I received $28 as other income. I hate K-1, but it's too late to sell it now.

If I remove this $28 other income in line 11C, my total tax liability doesn't change at all.

I can add this $28 gain to schedule D, too, because DBC is really a stock.

Thanks in advance.

Re: TurboTax said I sold investments other than stocks and bonds, but I didn't. This raises the auditing risk

Anonymous_ — Sun, 22 Dec 2024 04:15:58 GMT

Re: TurboTax said I sold investments other than stocks and bonds, but I didn't. This raises the auditing risk

Mike9241 — Wed, 09 Oct 2024 19:26:24 GMT

11c represents your share the partnership's profit or loss from trading section 1256 contracts. this number flows to form 6781 where it is split 60/40 long-term vs short-term and then the amounts flow to special lines on schedule D.

omitting income from your return is not good. the iRS gets a copy of the k-1 and could easily pick up the omission. whether it does something about it is a different matter.

that $28 does not really increase your audit risk

do not add it to schedule d directly. as stated 60% is long-term and 40% is short term so you would need two schedule d entries, and it still may cause audit issues because it's not properly reported on the 6781.

Re: TurboTax said I sold investments other than stocks and bonds, but I didn't. This raises the auditing risk

dleonard567 — Thu, 10 Oct 2024 15:33:46 GMT

Thank you, Mike and tagteam.