Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
no K-1 for SVXY if both short and long
Posted by: rsmith, March 23, 2017 06:32PM
I traded Proshares SVXY, which is a MLP, long a few times in 2016 and also wrote some calls against it. on occasion, the calls got assigned early and I covered the position.

I received a pseudo K-1 from Proshares that was blank and said "Information provided to the partnership was inaccurate or incomplete", call this number.

When I called I was told since I 'sold short' (the option assignment), they could not or would not provide me with a real K-1, even though I had some long trades as well.

They were not very helpful beyond that. Fine, I take that to mean that they won't report anything directly to the IRS K-1 related on SVXY??? So, my plan at the moment is just file the trades on 8949 since that is where Fidelity shows the trades anyway on a 1099-B as reported to IRS.

Anything wrong with this? I don't see how I have any other choice, I have no other numbers to use. Seems like a loophole.

Re: no K-1 for SVXY if both short and long
Posted by: Kaye Thomas, April 11, 2017 11:59PM
That's what I would do. It's unlikely that the K-1 would make any meaningful difference if you held no shares at the end of the year. Any income they might have allocated to you would increase your basis and therefore decrease your capital gain (or increase your capital loss). There's no way to be certain the numbers would wash, but I wouldn't lose any sleep over the possibility that the IRS might raise an issue here.

Kaye Thomas
Fairmark.com



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