Unexpected K1

Since you have no professional replies, you can have mine... Even if it does balance out, there will be incomes and expenses. The incomes are taxable, but you probably can't use the expenses; so you could owe money on the K1. I don't know what the IRS would do if you just ignored it. OTOH, a number of years ago I sold a gas ETF at a big lose. I didn't do my taxes that year so I don't know the details, but the K1 gave a big tax benefit. So don't just ignore it.

Hey! Use line breaks --had to edit and insert breaks before I could respond!

K1 --yes and using tax software you're led though. May even require a form E thing or more ---they're awful ---may even owe taxes e.g. if the partnership had royalties income. As a "partner" you owe taxes on your portion of the ownership! If both box 1 and box 3 are checked, you may have to do it twice!

brokerage statement. By year end price had declined so sold all shares for ~$1000

loss. Seemed straightforward to me. But when brokerage 1099 shows up the $90 dividend

no longer listed. Call brokerage and after some back and forth, they explain that

the stock apparently was a partnership and direct me to website where I can download a K1.

K1 has all sorts of numbers for interest income, to foreign taxes, to operating loss.

Am I suppose to include all these on my tax return? I kind of understand partnership

accounting - phantom income stuff. However, in this case it seems like when all is said

and done. - an respond wouldn't I have the $90 dividend income and the $1000 short term loss

Since I sold all 200 shares, I would think everything else would "balance out"? Thanks

Yes! For each K1 you receive, you must enter the data in your tax return. This may involve royalty income for which taxes are due. That may also involve a need for a form E. Tax software will guide you through all this!

What he bought is a publically traded partnership (PTP for short). In the year sold, the partnership provides a table showing adjustments to the gain/loss. Some of the gain/loss may be ordinary, which is treated differently than a regular capital gain. Until a PTP is sold, all of it's losses accumulate. Losses from one PTP can't offset income from another. There's no way to know if how you did your return is anywhere near correct without a lot of information that you probably don't want to post in a public forum.

For less experienced staff at my firm, I have them use a spreadsheet that does the calculations.

Didn't you notice the disclaimer from the broker saying not to use the monthly statements for your taxes?

We have had to explain the difference between a PTP and a stock even to brokers at Goldman Sachs. (The "best and brightest" my tuchas!)

I hope this helps, Gary