3062050
I asked this previously and still a little confused. I have been trading leveraged ETFs this year and I got a handful of K-1s from the companies that provide them (i.e. Proshares, etc.). I also got my 1099 forms from my brokerages. Do I enter these transactions (loss or gain either way) from the K-1s in my filing? Someone said I don't need to if they are included in the 8949 forms of transactions from the brokerage 1099s. Is there any time or reason these transactions would not be a part of the 1099s from the brokerages? This confuses me. Or, do I have to double enter these transactions? Is it possible I could taxed twice? Any help is appreciated?
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the one's you received k-1's from are publicly traded partnerships (PTP). you need to report the k-1 info for each. the broker's 1099's does not include the partnerships' income and any distribution you received from them should be not be on any line of the 1099-Div. however, if you sold any of them the 1099-B does not reflect the correct cost basis because the broker does not know their activity (profit/loss/distributions) and adjust tax basis accordingly. each one you sold should have included in its K-1 package a supplemental schedule from which you can compute the ordinary 751 gain (will be a separate column on that schedule and line 20ab of the k-1) , if any, and the capital gain/loss on sale. since the 1099-B report's the wrong tax basis the 8949 instructions say to follow the following procedure to report the correct cost basis
use with code B
• If this transaction is reported on a Part I with box B
checked at the top or if this transaction is reported on a
Part II with box E checked at the top, enter the correct
basis in column (e), and enter -0- in column (g).
box B and E indicate tax basis was not reported to the IRS which is proper for PTP sales.
reliance on someone that doesn't know the rules for tax reporting can get you in a lot of trouble.
I'm not relying on anyone, but just getting a foundation of understanding. So you do know the rules well?
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