Question

1099- Misc

Forum|Forum|4 years ago
February 14, 2022
1 reply
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I received a 1099-Misc from a financial institution for income derived from AMJ (ETN in the MLP sector). Turbo tax is prompting me to link to a form such as 4835, schedule C or schedule F....none of which I feel are accurate. This is a passive investment income not earned income and I think it should be entered on the 1040 but don't know how to work around the system generated links?

ColeenD3

You can add it as ordinary income. Follow the steps below.

Federal Taxes ->
Wages & Income ->
I'll choose what I work on -> scroll to the bottom and under
Less Common Income select Start (or Update) for
Miscellaneous Income
Other reportable income and you can enter your own description(s) and amount(s).

JPMorgan Alerian MLP Index ETNs (AMJ) Frequently Asked Questions About Tax Treatment

What is the tax treatment upon sale, exchange, or redemption of the ETNs for U.S. holders? As more fully described in the relevant pricing supplement and product supplement, assuming the ETNs are treated for U.S. federal income tax purposes as “open transactions” with respect to the Index and not as debt instruments, upon a sale or exchange (including early repurchase or redemption at maturity) of the ETNs, if you are a U.S. holder (as defined in the product supplement), you should recognize gain or loss equal to the difference between the amount realized on the sale or exchange and your tax basis in the ETNs, which should equal the amount you paid to acquire the ETNs. This gain or loss should be capital gain or loss, subject to the discussion of the “constructive ownership” rules provided in the relevant pricing supplement and product supplement, and should be long-term capital gain or loss if you have held the ETNs for more than a year.