Schedule K-1 VIX Stock open and closed same year??? Sales Dates? Sale Info?

[whalkides]

Hi, really hoping for some help around my K-1 form for what was sent for open and closing of VIX shares.   I filled my K-1 to the point where it says where I checked "This partnership ended in 2022"  It was for the stock VIX and I had 20 shares ought on 3/22/22 and sold on 3/23/22 and then 25 shares bought on 4/19/22 and sold on 4/20/22.  

So I proceed to put "Complete disposition"

Then "Sold Partnership Interest"

Then I get to "Enter Sales Dates"  Do I put the first sales date and last sell date here (ie. 3/22/22 - 4/20/22)??  Or something different?

Then from there where do I get the "Sale Information"  Its asking for Regular Gain or Loss:  "Sale Price" "Selling Expense" "Partnership Basis", "Ordinary Gain:, and "1250 Gain" and then AMT Gain or Loss: " Partnership Basis", "Ordinary Gain", and "1250 Gain"?  Where can I find this info?

Learned the hard way here to stay away from these types of stocks.  If it helps my beginning capital account is 0, capital contributed 907, net income 0, other increase 0, withdrawals 907 and ending capital account 0.

Thank you for any help!

[DianeW777]

Let's take the questions one at a time.

1. Do I put the first sales date and last sell date here (ie. 3/22/22 - 4/20/22)??  Or something different?
   1. You can use the latest sales date (4/20/2022).  Since these are both short term sales the tax treatment will be the same for both regardless.
2. Where can I find this info? (Sales price, expenses, basis, etc)
   1. You should have the partnership basis with your documents included with the K-1 (based on your information the cost basis should be relatively close to the selling price, but you should be able to use your actual purchase price plus purchased expenses, if any).  For both sales this will be ordinary gain.
   2. You do show that your investment (capital contributed) is $907 which would be your cost before any expenses of purchase or sale.
   3. AMT would be the same.
   4. There is no 1250 gain in your situation (held more than one year).

[nexchap]

Did you also get a 1099 from your broker listing the sales?  If so, and assuming the K-1s have nothing but 0s in Part III (which seems likely given the short duration), you can skip the K-1 entry:  it won't affect your return.

If there are values in Part III, you'll want to complete the K-1 interview.  But to avoid duplicating the 1099-B that you received, enter 0 for Sales Price and 0 for basis.  Your 1099 is already reporting the Cap Gain on the sale.  Re-entering that info into the K-1 will cause it to generate a duplicate 1099-B, double counting the gain.

[whalkides]

Thank you for the reply.  Yes, I did receive a 1099-B from robinhood and the VIX stock was reported on there.  Copied it below.  Part III in the Schedule K-1 is all 0 except for #16 which indicates by check mark Schedule K-3 is attached.  Do you think I am ok completely skipping the Schedule K-1 or should I fill it out just to be safe?  Thanks again!

PROSHARES ULTRA VIX SHORT-TERM FUTURES ETF / CUSIP: 74347Y839 / Symbol:
2 transactions for 03/23/22. Total proceeds and cost reported to the IRS.
20.000 303.39 03/22/22 296.79 ... 6.60 1 of 2 - Sale 25
20.000 303.40 03/22/22 296.52 ... 6.88 2 of 2 - Sale 25
03/23/22 40.000 606.79 Various 593.31 ... 13.48 Total of 2 transactions
5 transactions for 04/20/22. Total proceeds and cost reported to the IRS.
6.000 71.55 04/19/22 73.91 ... -2.36 1 of 5 - Sale 25
15.000 178.87 04/19/22 179.85 ... -0.98 2 of 5 - Sale 25
2.000 23.85 04/19/22 24.71 ... -0.86 3 of 5 - Sale 25
2.000 23.85 04/19/22 24.67 ... -0.82 4 of 5 - Sale 25
1.000 11.93 04/19/22 11.98 ... -0.05 5 of 5 - Sale 25
04/20/22 26.000 310.05 Various 315.12 ... -5.07 Total of 5 transactions
Security total: 916.84 908.43 ... 8.41

[whalkides]

Sorry for duplicate but as mentioned I noticed the VIX stock was posted in the Robinhood 1099-B that indicates the total cost and proceeds were reported to the IRS.  Is filling out the Schedule K-1 still suggested?  I don't think a $8 gain matters much, but want to be safe and report things the right way?

If K-1 needed:  what should I put for:

Selling Expense?

Partnership Basis?

1250 Gain?

Thanks again!

[nexchap · Accepted solution]

@whalkides You can skip entering the K1.  The K1 isnt filed with your taxes (its reported to the irs already), so filling it out in TT is only necessary if it has entries that would affect your taxes.  Yours doesn't, so no need to do anything with it.

[sanjay-acharya]

Thanks so much for this information.