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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: tesla on April 13, 2014, 07:51:06 AM

Title: Taxes: What Broker Reports vs What the ETF Provider Reports
Post by: tesla on April 13, 2014, 07:51:06 AM
I purchased 121 shares of natural gas ETF stocks (BOIL) through Scottrade on 11-1-13 in the amount of $3504.87 and sold all of it on 12-2-13 in the amount of $4146.51 which is a gain of $641.64. All of this is reflected on Scottrades 1099 statement they sent me. The stocks are a limited partnership stock provided by ProShares. The Schedule K-1 statement that ProShares sent me shows the "Current Year Increase (Decrease)" in section L in the amount of $1,628.00 and the "Withdrawals" in the amount of $5132.00. This is nearly a $1000.00 difference than what Scottrade has reported. A ProShares rep explained that the Schedule K amounts will be different from Scottrades statement due to any gains or losses that occurred in the ETF LP are pass through entities so any income gains or losses that occur in the ETF have to be passed down to share holders. Does this sound right? ProShares amount has me paying around $200.00 more to the IRS for gains that I didn't receive. I've talked to 2 Scottrade reps that are befuddled by this.

Thanks for any help you can provide.