Do gains reported from contracts on a K-1 result in taxation if the same gains are reported in a 1099-B?

Forum|Forum|1 year ago
March 23, 2025
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I traded UVIX/SVIX in short-term trades. I profited $X amount and all the trades/gains are reported in my 1099-B from my brokerage which I uploaded to TT. I also received a K-1 for both ETFs and added that to my income section as a schedule K-1. This automatically added another line income item for 1256 "Contracts and Straddles" showing the same gains as reported in my 1099-B. The same gain is shown in my 1099-B and the 1256. Do I need to pay an extra tax on these gains since I'm filing a 1256/K-1?

DianeW777

No, you are not required to report the same income twice. It's unclear why you would receive a 1099-B and a K1 for the same trades. Once you are confident this is duplicated income, report only one of them. Keep all documentation with notes in your tax file should you need it later.

You may consider consulting the company who issued the K1 and check the identifying number on each document.

What is Form 6781: Gains and Losses from Section 1256 Contracts and Straddles?

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JohnZ1111

Hi, DianeW777,

I have the same issue here, and the K-1 income amount is different from the 1099-B actual Buy/Sell annual gain, K-1 amount is higher. And the cost basis on K-1 totally doesn't any sense to me. So which income should I report then, the K-1 amount or the 1099-B I imported from the brokerage company ?

Is there anyway to adjust the cost base somewhere to reflect the income once ?

Thank you,

JohnZ

PatriciaV

Employee

Because ProShares Ultra VIX Short-Term Futures ETF (UVXY) is a publicly traded partnership (PTP), you will need both Form 1099-B and Schedule K-1 to accurately report this activity. You may also be subject to the wash sale rules.

For step-by-step instructions, see: How do I report the sale of Publicly Traded Partnerships (PTPs) or Master Limited Partnerships (MLPs) in TurboTax?

@JohnZ1111

[edited 4/13/25 | 6:47 AM PDT]

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