Got a K-1 from UUP indicating over 6.5K in income to be reported...OUCH!

Discussion in 'ETFs' started by Jreality, Feb 25, 2013.

  1. Jreality


    I realize I am allowed to adjust my UUP cost basis upwardly to reflect this so-called income, as stated on the Sales Schedule. However, that doesn't help me in 2012, since I already have a capital loss carryover that is greater than my 2012 gains, and so I have a loss of 3K in 2012 for federal tax purposes regardless of any adjustment to UUP cost basis.

    In other words, I now owe additional money for 2012 Federal Tax purposes on the extra 6.5K in so-called income, thanks to UUP, and the 6.5K in cost basis adjustments effectively get added to my already still large capital loss carryover.

    In addition, one of the 3 brokers I traded UUP with, reported UUP as Box A trades, so I likely will have to use a code on form 8949 to correct my broker on cost basis reported on that 1099. At least the other 2 brokers reported on Box B, so I don't have to be making corrections to what was reported on those 1099s.

    BOTTOM LINE: UUP, quite frankly, sucks! Don't trade it, ever!
    bellman likes this.