Brokers that report UVXY and its options as Sec. 1256

Discussion in 'Taxes and Accounting' started by dcwriter2, Feb 25, 2022.

  1. Used Schwab for the first time. They don't. Means more work for my accountant. What about the other brokers? IB? TS? Fidelity? Others?
     
  2. ajacobson

    ajacobson

  3. These are non-equity options. Many pros say that means they get Sec. 1256. I have heard some brokers agree. Just not sure which ones. Clear on the question, now?
     
  4. ajacobson

    ajacobson

    1. They are 1256 contracts, but you don't own them.
    2. You own shares of pool and get a K 1. You still benefit from the good/bad of 1256.
    3. All owners get K 1s - it has nothing to do with the broker.
    4. K 1s almost always arrive late - other than that they can be superior to direct ownership.
    5. Much of the tax advice here is wrong.
    6. Read the pdf that was attached.

    https://www.proshares.com/globalassets/fact-sheets/q4-2021-fact-sheets/prosharesfactsheetuvxy.pdf

    Direct quote from the pdf "Additional Information Daily holdings are fully transparent and available at ProShares.com UVXY is treated as a partnership for tax purposes and generates a K-1 tax form"







    "
     
    Last edited: Feb 25, 2022
  5. Just a follow up. Interactive Brokers provides a Sec. 1256 Worksheet that INCLUDES UVXY OPTIONS! My accountant thanks you.