I received a schedule K-1 for an ETF investment and the same investment is listed on my 1099-B. Do I enter both forms?

[Jim-H1]

The investment was in Pro Shares Ultra VIX short.  It would seem that if I enter both forms, I am counting the capital gain/loss twice.  Does anyone else have the same problem?

[JamesG1]

I would expect to see the 1099-B report the sale of the investment allowing you to report a gain or loss upon sale.

I would expect the K-1 to report the income / loss generated by the investment for the period that you owned the investment.

Are you seeing something other than this?

[lena1567]

I am interested too. I believe the question is if for the same stock/etf gain/loss is reported on both 1099b and k1 will it counted as double gain/loss?

[Jim-H1]

JamesG1, you are correct.  The 1099-B shows all transactions of the ETF purchase and sale.  So these enter into TTax as gains and losses.  The K-1 indicates similar information.  But when I enter the K-1 into TTAx, it is showing my loss as a Code "C" Sec. 1256 contracts and straddles.  Then TTax counts the loss again.

[Jim-H1]

lena1567, you are correct.  It looks like it is double counting the loss.

[ToddL99 · Accepted solution]

The K-1 reports your share of the investment's 2020 income, losses, deductions and credits, while the 1099-B reports the sale of the investment itself.

In addition to reporting 2020 income, you also need information from the K-1 to calculate your cost or other basis for the investment.

To avoid "double-counting", follow the instructions in the following post: Reporting Sale of publicly-traded limited partnerships 

The sale of the ETF is reported on the "Stocks, Mutual Funds, Bond and Other"  interview of investment income.

The current year income is reported in the "Schedule K-1" interview of Business Investment and Estate Trust Income.

See sample screenshots here for aid in navigation.

[citizenkoehn]

If I am taking the standard deduction, do I need to bother filing this K1?

[RobertB4444]

@citizenkoehn  It would be unusual for a K-1 to be issued that only had deductions applicable to the itemized deduction section - although not unheard of.  If that is the case - the K-1 only shows itemized deduction amounts on it - then no, you do not need to enter it.  If it shows any other numbers relevant to your tax return - or if you aren't sure - then you need to enter it.