My partnership received a K-1 from another partnership. The K-1 received was for a stock that was purchased (USO) which is an exchange traded fund (ETF) and a publicly traded partnership. I have a couple of questions:
1. On the K-1 we received there was Part 3 box1 - Ordinary Business Income (Loss) of ($14), Part 3 box11 Code C (Section 1256 Contracts & Straddles) - Other Income of $840.
Does this have to flow onto my partnerships 1065? If so where? The Other Income of $840 is reported on form 6781 and then onto Schedule K of the 1065? The Ordinary Business Income (Loss) of ($14) is reported on the Schedule K of the 1065 line 1 or 11?
2. How is the sale of the stock handled in the future? Is the total increase in capital of $840-$14= $826 added to the cost (basis) of the shares and reported on schedule D (form 1065) when the stock is sold?
Any help is appreciated.
JP
1. On the K-1 we received there was Part 3 box1 - Ordinary Business Income (Loss) of ($14), Part 3 box11 Code C (Section 1256 Contracts & Straddles) - Other Income of $840.
Does this have to flow onto my partnerships 1065? If so where? The Other Income of $840 is reported on form 6781 and then onto Schedule K of the 1065? The Ordinary Business Income (Loss) of ($14) is reported on the Schedule K of the 1065 line 1 or 11?
2. How is the sale of the stock handled in the future? Is the total increase in capital of $840-$14= $826 added to the cost (basis) of the shares and reported on schedule D (form 1065) when the stock is sold?
Any help is appreciated.
JP