Question

TurboTax said I sold investments other than stocks and bonds, but I didn't.

Forum|Forum|1 year ago
October 9, 2024
2 replies
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So, I searched around, and found out it's from K-1, 100 shares of stock DBC. In K-1, line 11 C (Sec. 1256 contracts and straddles), I received $28 as other income. I hate K-1, but it's too late to sell it now.

If I remove this $28 other income in line 11C, my total tax liability doesn't change at all.

I can add this $28 gain to schedule D, too, because DBC is really a stock.

Thanks in advance.

A

Anonymous_

Employee

No text available

M

Mike9241

11c represents your share the partnership's profit or loss from trading section 1256 contracts. this number flows to form 6781 where it is split 60/40 long-term vs short-term and then the amounts flow to special lines on schedule D.

omitting income from your return is not good. the iRS gets a copy of the k-1 and could easily pick up the omission. whether it does something about it is a different matter.

that $28 does not really increase your audit risk

do not add it to schedule d directly. as stated 60% is long-term and 40% is short term so you would need two schedule d entries, and it still may cause audit issues because it's not properly reported on the 6781.