Proshares UVXY K-1 and 1099-B

Discussion in 'Taxes and Accounting' started by cz168, Apr 16, 2018.

  1. cz168

    cz168

    Hi, Friends,

    I traded a few Proshares UVXY shares resulting a loss last year, without knowing a K-1 is needed for tax purposes :(

    I never received a K-1 so I called proshares today and they manually generated one over the phone. When I get the emailed form K-1(1065), everything is 0. Capital gain/loss in box 8, 9 are 0. In box 11, there is "C" and the amount is 0, in box 13, there is a "K" and the amount is also 0.

    So, I put all these numbers into my HRBlock, it did not change anything AT ALL. I checked the documents generated by HRBlock, there is NOT a single extra form, or even an extra line indicating that a form schedule K-1 was used.

    Note that I did log the trading loss in 1099-B via form 8849.

    I am wondering does this sound correct? How does IRS know that I have included the K-1 in my computation in this case??

    Please advise!

    Thanks,
    -Charly
     
  2. Robert Morse

    Robert Morse Sponsor

    I would enter my trades.
     
  3. JSOP

    JSOP

    Yes I got the same form in the mail too. What is a K-1? What does it do? I have never seen this tax form before and just like OP, all the boxes have value of 0 in it. I am already reporting my trades as a part of the calculation for my capital gains/losses. What do I do with these K-1 forms?

    Thanks
     
  4. cz168

    cz168

    Hi,

    Do you mean simply enter them via 8849 as indicated in 1099B and forgot K1?

    TIA
     
  5. Robert Morse

    Robert Morse Sponsor

    I have to say before I provide my opinion, that I 'm not a tax expert and you should consult one. That said, I would ignore the K1 that was empty and report my trades on Schedule D unless it is a business account. I'm not familiar with the 8849. The Schedule D should match your 1099-B.
     
  6. cz168

    cz168


    Thank you for your advise! I guess I don't have another choice.
     
  7. sprstpd

    sprstpd

    I am not a tax expert, but I have my opinions:

    If all the entries are 0s, you can effectively ignore the K-1. HR Block should generate a Schedule E on your return even if you enter a 0 K-1. But the Schedule E will be all 0s.

    For K-1s with non-zero values, read https://www.elitetrader.com/et/threads/svxy-k-1-and-turbotax.288843/