question about K-1

You should be able to claim the suspended losses in the year that you dispose of the investment.

Ira Smilovitz

of the investment.

Thanks for the response. I disposed of the securities of that ETF back in 2011. But I think these losses are "disallowed".

I can't figure it out. It seems like it has no material effect on the return but will keep getting carried over forever.

Anoop

Ira is right. The losses that you could not take are now allowed. If you are using a tax program there should be a field for sum of losses not allowed in previous years. For this year you might have losses again, or a gain that does not balance the losses. But on the K-1 you also say that you disposed of the K-1 in 2012 -- there should be a checkbox. Then your program should allow the losses, which will wind up on Schedule E page 2, and then on line 14 of 1040.

Also what was the ETF? Some ETFs are governed by treasury regulation

using a tax program there should be a field for sum of losses not allowed in previous years. For this year you might have losses again, or a gain that does not balance the losses. But on the K-1 you also say that you disposed of the K-1 in 2012 -- there should be a checkbox. Then your program should allow the losses, which will wind up on Schedule E page 2, and then on line 14 of 1040.

The ETF in question is UNG. TurboTax still reports the loss as being disallowed.

Anoop

UNG is 1.469-1T(e)(6), so I think the loss on line 1 is allowed in the year incurred but am not 100% sure. If you didn't take it, then you will do so when you dispose of the stock. Try the link Alan sent you, or ask on the Turbotax forums. Maybe Turbotax is doing it right in that it is taking the loss, but this gets lost in the wizard interface. Look at form Schedule E page II to see if the loss is reported correctly there. I think you have to pay to get to see the actual forms generated.