What gives with this? I buy some shares on 12/30/08 which I sold a week later for like a 5 point gain, figure I made 5pts.
Today in the mail, I get a Schedule K-1 form from the United States Oil fund letting me know that my share of the losses as a "partner" come to over $700 or over $2.40/sh, meaning I have to lower my cost basis by that amount and therefor pay taxes on that much more gain!
Should call it Schedule K-Y!
I got it in the mail too. I traded USO last year with a couple hundred $ loss using my 401K account.
Do I still need to report this K1? I already filed my tax return. Quite annoying.
Pls advise. Thanks.
it actually positive. please correct me if i am wrong. I got the K1 too. and on box 11. it's losses. So this can be use to offset income when filing tax. it's as if you have a company and the company loss money.
I have already files my tax returns and I just received two Schedule K-1 forms in the mail from Us Oil today.
One for my personal investments and it has nothing to do with 401K, and one for 401K investments. My 401k is called Individual 401K and as far as I know , I need to file RS Form 5500 or Form 5500EZ if assets exceeds over $100K (right not it is not over $100K)
I am not sure what I need to do with these schedule K-1 forms? Please advice,
if in a taxable account, you definitely need to declare it. The IRS gets a copy too so you are asking for trouble if you ignore it.
You should have researched this before buying and before doing your taxes.
my K1 shows capital contributed and withdrawn as the same in part II section L and in part III the only box with anything is 19 (distribution) with the number zero.
I did actually make a profit of $968 in one swing trade of USO bought 12-26-08 sold 12-29-08--it is listed in schedule D of my return as short term capital gain. I did not file K1 with original return but guess I have to amend it now even though there does not appear to be anything on it that will affect my totals. USO is slack as shit in getting this out so late
Hypothetical: so what happens if you bought 100 shares for $30, sold $100 shares for $30, -- had $0 capital gains, but then a k1 comes in the mail and said you made $100 and now owe $33 in income taxes. how the F could they charge you income taxes on money you never received? That's illegal...
Ultimately irrelvant in my case as I had $30k in write-downs this year so I have carry-overlosses for the next decade.
For the rest of you, you may as well skip filing an ammendment. AIG will break the US and the government will be too busy cleaning up a civil war than to run around collecting taxes.
In response to "tradeit_dontloveit", I had the same thing. I daytraded/swingtraded USO and UNG and received a K-1 from each. However, Lines #1 through #14 are all blank or zero.
Do you (or anyone reading) know if I still have to report the K-1 info on my tax return??
Seems a little silly since there are no real tax implications with everything being "zero" or "blank" on the K-1.
I don't want to raise any red flags with the IRS, but I have had my tax return finished for a few weeks now...do I need to correct my return for "zeros" and jump through a bunch of hoops via tax forms before filing my return??
And yes I did report the actual "daytrades" gains/losses appropriately on Sch D.
Thanks in advance for anyone who knows the correct answer to this situation.
you got it backwards, the losses raise your basis. I explained this weeks ago, that you could time purchases at the end of each month that USO loses money and pocket the losses for that month which can offset any trading gains you might have.
Then 'splain this Lucy:
From the FAQ sheet that came with my K-Y
Q: How is my tax basis determined for computing gain or loss?
A: Your tax basis is generally the original amount paid for the partnership units adjusted as follows:
-Increased by the allocable share of income and gain reported to you on the Schedule K-1
-Decreased by the allocable share of expense and loss reported to you on the Schedule K-1
My K-1 shows a "loss" of over $700 and a "Ending capital account" (read adjusted cost basis) that is LOWER by that same amount.
I have the same issue. I bought USO in a Rollover IRA. I asked a CPA that has done taxes for years in Silicon Valley, and he says if it's in a deferred IRA account, you don't have to report the k-1 info on your return. His exact words were "what happens in an IRA stays in the IRA". I would not mind hearing a second CPA confirm this though, as this is a pretty complicated topic.
Mine is in an IRA and the taxpayer ID on my K-1 is the banks - not my soc. sec #. DH is tax attorney and quickly caught this, but didn't have time to really think through what's going on. If he has a chance to look into it tonight I'll let you know.
How does United States Oil make gains or losses? My guess is when they buy and sell futures contracts and record capital gains/losses. They don't pay taxes, we do.
The big worry I now have is these gains/losses are unknown to me until March when the K-Y statement arrives
I agree: Whiskey, Tango, Foxtrot ??