USO Partnership K-1 Question

Forum|Forum|3 years ago
April 13, 2023
1 reply
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Hi,

I purchased USO ETF through Fidelity 2 years ago and never traded it nor received dividends since then. However, I received a K-1 form this year, on which it shows $5k other income in box 11C, $150 interest income in box 5, and ordinary dividends $191 in box 6a. I don't see these gain in 1099-INT nor in 1099-B and don't understand why those boxes have some positive amounts. If I input these numbers into Turbotax, it incurs $1.5k tax, which doesn't make sense.

Do I need to report these income that I have never seen anywhere on my Fidelity tax forms? Thank you very much for your advice!

Best answer by nexchap

@lightyeargua Yes -- you have to report the income. By buying into a partnership, you become responsible for paying taxes on any partnership income, even though you didn't get any cash. However, when you sell the partnership, your cost basis will have been increased to account for this issue (e.g., after this K-1, your new cost basis is whatever you paid + $5000+$150+$191).

nexchapAnswer

**Say "Thanks" by clicking the thumb icon in a post**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user. Use any advice accordingly!