Message Font: Serif | Sans-Serif
No. of Recommendations: 5
I am having a problem on my taxes between my statement from Scottrade(1099-B and ProShares K-1). My CPA, who fills out my taxes, says he is obligated to report both. My problem is that by reporting the proceeds on the 1099-B and K-1 I am in effect being taxed twice. Can someone please tell me how to report my buy and sale so I do not have to report it twice. Or if someone can tell me which IRS publication to clear up this situation so I can show my CPA which to report. I really would appreciate it. Thanks

Your accountant is correct, you report both. The K-1 documents your share of income/expenses associated with your ownership period of the K-1 entity. The 1099-B documents your sales proceeds (and perhaps your capital gain/loss) upon the sale of your interest. The documentation provided by the K-1 entity will also show you what adjustments (if any) are required to your cost basis and if any of your gain is ordinary vs. capital. This information is probably not incorporated in any cost basis information that Scottrade gave you.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.