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Author: pastor27 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121146  
Subject: honestly shocked - ETF (YCS) tax issue Date: 3/26/2014 8:33 AM
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Hello, Motley Fool members and other investors

I am in a state of shock and feel like I have been robbed and beaten at gunpoint. I WANTED TO WARN ALL OTHER INVESTORS of this ETF/YCS situation.

Although it is UNBELIEVABLE, I am going to be taxed on $12k of income WHEN I ONLY RECEIVED $4k in total gains!!

I purchased the ETF YCS (ProShares UltraShort Yen). I may have been warned about tax complications, but I DID NOT EXPECT THIS! This fund is set up as a partnership. I received a K1 that reported $8k flow-through income THAT I DID NOT RECEIVE!! I made about $4k in my options and YCS trades, but by the time I pay taxes on $12k (adding the $8k that I didn't get and will NEVER get), I will barely make any money at all on my YCS trades. I still can't believe I'm being taxed on money I will never get, but that's what CPA's are telling me!

If you are going to purchase an ETF - MAKE SURE YOU UNDERSTAND IT and that they will report any gains to you on a 1099 and NOT a K1!!

AVOID Proshares (EUO, YCS), Blackrock (GSG), Invesco Powershares (DBC DBA), US Commodity Funds (USO, UNG) for starters!

Blessings,
Greg
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