Question re: USO - if

    Posted by lnelson214 on 23rd of Mar 2023 at 04:17 pm

    Question re: USO - if you trade it multiple times in a year, do you get more than one K-1 per tax year?

    No. Just one. I just

    Posted by DigiNomad on 23rd of Mar 2023 at 04:24 pm

    No. Just one. I just dealt with a DBC K-1 earlier today. 

    fyi, PDBC and PDBA are

    Posted by oatdust on 23rd of Mar 2023 at 10:20 pm

    fyi, PDBC and PDBA are no K-1 versions of DBC and DBA



    I switched over to PDBC

    Posted by DigiNomad on 23rd of Mar 2023 at 11:04 pm

    I switched over to PDBC last year and came to regret it somewhat.
    1. The performance has been horrid since the switch and the 10%, annual dividend (payable once per year) took a big ass chunk out of the price. I get it, but try explaining that to clients.
    2. DBC is a section 1256 contract and therefore gets 60/40 tax treatment (in most circumstances). This is worth the K-1 hassle, in my opinion, unless you are strictly a buy and hold investor, which most of us in the BPT community are not. 

    Warning On K-1 ETFs. A few

    Posted by oatdust on 24th of Mar 2023 at 10:00 am

    Warning On K-1 ETFs.

    A few years ago I invested 100K in an inverse currency ETF (think it  was YCS inverse Japanese Yen)

    Held it less than a month, didn’t move much, sold it for about 100 dollar profit.

    At end of year got K-1 and had to claim about a 1.5K profit on partnership.

    Called fund and whined that I only held the thing less than a month, didn't make much money on it.

    Their response "you shouldn't have invested that much money in it."

    Lesson learned.

    Yes I've told people here

    Posted by matt on 24th of Mar 2023 at 10:05 am

    Yes I've told people here 100s of times as well about them. Sorry about your story, that sucks

    these K1's are BS and should not be allowed or there should be a warning every time you try to buy on - warning pops up on your broker warning about the K1

    First I'm hearing about this

    Posted by icecoldjones on 24th of Mar 2023 at 10:29 am

    First I'm hearing about this but luckily haven't gotten a K-1 yet in my trading career. That is BS and they should warn you just like Fidelity warns me when I buy a leveraged ETF like SPXS or when I buy a stock they deem to be a "penny stock". They review the risks with you prior to submitting the order.

    Sorry for being a noob, but what are some common ETFs or stocks that might trigger a K-1? I want to avoid those.

    USO, UNG and their related

    Posted by oatdust on 24th of Mar 2023 at 10:39 am

    USO, UNG and their related inverse and leverage ETFs

    Currency ETFs and their inverse and leveraged UUP, UDN etc.

    DBA, DBC

    Before you invest in an ETF just do a Google search

    "Does YCS ETF ISSUE A K-1"

    Damn, good to know oatdust,

    Posted by icecoldjones on 24th of Mar 2023 at 10:47 am

    Damn, good to know oatdust, thanks! This was my first year playing with UNG and held for about a month and made a small profit. Luckily, I made that play within a Roth IRA which should prevent taxes. Google says I'll get a K-1 for information purposes but owe no taxes.

    To be fair, it works

    Posted by oatdust on 24th of Mar 2023 at 10:51 am

    To be fair, it works both ways.

    One time I invested 50K in USO, didn't hold that long and got a K-1 claiming a 1.2K loss.

    Tax season is full of surprises when you invest in K-1 ETFs.

    Thanks for the info!

    Posted by lnelson214 on 23rd of Mar 2023 at 04:25 pm

    Thanks for the info!

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