Could uses some answers about a Schedule K-1 (Form 1065) and ETFs

Factual Questions
1

So it appears I’m a partner in a Publicly Traded Partnership!

I received a Schedule K-1 (Form 1065) in the mail yesterday (a week after I was supposed to file my taxes).

Apparently when I bought and sold an ETF (ProShares Ultra Crude Oil) it made me a partner.

I’ve gone into Turbotax and submitted the relevant information for the K-1. But my main question is this:

Do I need to go into my list of stock purchases and remove these transactions?

Thanks

2

{bump}

I’m sort of surprised not to see a response. I’ve been trading for a while and this is the first time I’ve gotten one of these. I feel like they are very common for people involved with a business partnership, but this seems like a strange application of the rule. It says that by buying their ETF I became a “partner.” It also seems like the profits they are reporting are different than the gains I made from the ETF.

3

Okay, last bump before I submit my taxes. I put the K-1 into Turbotax and followed the instructions. I think my estimated return went down a bit. The government gets more money so I assume I did it right. If the IRS comes knocking I’m point here to show that no one else knows.

4

It’s been years since I prepared tax returns, but I believe K-1 income is reported on Schedule E.

5

You may wish to look at these IRS instructions: Partner’s Instructions for Form K-1, which discusses how to report the information from a K-1. You may also want to search the IRS website, which is very good.