Re: K-1 For Shares Sold Short

I DID repurchase it, but at no time was I "long" the shares. I was "short" then "bot to cover" the short.





Paul Thomas, CPA wrote:
"ed" <edcosoft@xxxxxxxxxxxxx> wrote
On Mar 21, 1:01 pm, "Paul Thomas, CPA" <paulthomascp...@xxxxxxxxxxxxx>
wrote:
"D.D. Palmer" <ddpal...@xxxxxxxxxxx> wrote

Today I unexpectedly received a K-1 form for shares of an ETF (US OIL
FUND, symbol "USO") that I sold short in 2007. The form was blank except
for my correct name and SS number, and had a printed note to call the
issuer's tax office as they did not have my correct info.
OK I called and the twinkie on the phone had no clue.
As I was SHORT shares I did not receive any royalties, dividends etc, nor
were any reported to the IRS. The form, as I stated, was blank except for
my name, rank and serial number.
I assume there is nothing for me to do with this form? Good assumption??
It's never good to assume anything about taxes.

There was some instant in time that you "owned" a portion of this oil fund -
a partnership I suspect - and they are required by law to issue ~~all~~
partners who held an interest in the partnership for even one second and
report their fractional share for however small a portion of time or amount.

Chances are good that for the short time that you held some amount of
partnership interest there would be such a small sliver of income allocated
that it would be effectively zeros, you had better get it squared with the
fund. And don't call their employee a "twinkie", you want them to help you.
Chances are they know more than you do.

I would suggest that you stop trading in things that you don't understand.

--
Paul A. Thomas, CPA
Athens, Georgia

You SOLD the fund short, and never repurchased so you didn't own it
for even a second. Under those circumstances I would expect there
would be nothing to show on the K-1.









If he never owned it......why is there a K-1 - which gets issued to owners.






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Relevant Pages

  • Re: K-1 For Shares Sold Short
    ... FUND, symbol "USO") that I sold short in 2007. ... partners who held an interest in the partnership for even one second and ... report their fractional share for however small a portion of time or amount. ... Chances are they know more than you do. ...
    (misc.taxes)
  • Re: K-1 For Shares Sold Short
    ... FUND, symbol "USO") that I sold short in 2007. ... partners who held an interest in the partnership for even one second and ... 1099-B which should show the proceeds from your sale. ...
    (misc.taxes)
  • Re: K-1 For Shares Sold Short
    ... FUND, symbol "USO") that I sold short in 2007. ... partners who held an interest in the partnership for even one second and ... would be nothing to show on the K-1. ...
    (misc.taxes)