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!
Thanks for the confirmation on USO in IRA account. I guess I dodged a big tax prep fee bullet on this one. God knows what a tax preparer charges for figuring out k-1 partnership stuff. No more commodity ETFs for me.
DH (tax attorney) says same thing if it's held in an IRA. Note your K-1. It should have under item I that the partner (you) is a IRA/SEP/KEOGH and item E should NOT be your social security #.
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.
my K1 shows capital contributed and withdrawn as the same in part II section L and in part III the only box with anything is 19 (distribution) with the number zero.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
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.
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.
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.