4 ms·

Robinhood provides the same thing, but it is annoying to see an unusual tax form if you're used to W2 and 1099. I wonder what kind of fund he was buying though.

Robinhood provides the same thing, but it is annoying to see an unusual tax form if you're used to W2 and 1099. I wonder what kind of fund he was buying though. He couldn't have been actually trading straddles, because Robinhood would have had to approve him, which involves acknowledging you understand the tax implications...

lastofthemojito 5y ago
I don't think I did anything too out of the ordinary. Using the typical Robinhood UI, I bought and sold Invesco DB US Dollar Index Bearish Fund (UDN), which didn't require any extra work on my part compared to trading $SPY or $TSLA or whatever. Then I got a Schedule K-1 from Invesco and instructions to file a Form 6781. It was a separate form from the 1099 that Robinhood sent me and not auto-imported from Robinhood to TurboTax.
- ghaff 5y ago
  A K-1 is what I get from a Charitable Remainder Unitary Trust. (Basically an annuity from donating appreciated assets.) Never looked into the details of the form--that's why I have an accountant--but seems to relate to some sort of partnership interest.
  - lastofthemojito 5y ago
    Yeah, the form lists me as a limited partner in the partnership and lists my purchase price of the ETF as "capital contributed during the year" and my sale price of the ETF as "withdrawals & distributions". I really don't understand why trading that particular ETF triggers this tax form vs listing the gain or loss on a 1099 just like every other stock or fund I traded. Probably something about the underlying currency trading? But if I had known it was going to mean spending hours researching the correct way to file, I probably would have skipped that particular investment.
    - ghaff 5y ago
      It seems because the fund is basically a bundle of futures contracts and therefore "The Fund is not a mutual fund or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder." But, yeah, I wouldn't have dug that deeply in all probability and I'm sure the details are hyper-technical. https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=UDN https://www.invesco.com/us/financial-products/etfs/product-d...

lastofthemojito 5y ago

I don't think I did anything too out of the ordinary. Using the typical Robinhood UI, I bought and sold Invesco DB US Dollar Index Bearish Fund (UDN), which didn't require any extra work on my part compared to trading $SPY or $TSLA or whatever. Then I got a Schedule K-1 from Invesco and instructions to file a Form 6781. It was a separate form from the 1099 that Robinhood sent me and not auto-imported from Robinhood to TurboTax.

ghaff 5y ago
A K-1 is what I get from a Charitable Remainder Unitary Trust. (Basically an annuity from donating appreciated assets.) Never looked into the details of the form--that's why I have an accountant--but seems to relate to some sort of partnership interest.
- lastofthemojito 5y ago
  Yeah, the form lists me as a limited partner in the partnership and lists my purchase price of the ETF as "capital contributed during the year" and my sale price of the ETF as "withdrawals & distributions". I really don't understand why trading that particular ETF triggers this tax form vs listing the gain or loss on a 1099 just like every other stock or fund I traded. Probably something about the underlying currency trading? But if I had known it was going to mean spending hours researching the correct way to file, I probably would have skipped that particular investment.
  - ghaff 5y ago
    It seems because the fund is basically a bundle of futures contracts and therefore "The Fund is not a mutual fund or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder." But, yeah, I wouldn't have dug that deeply in all probability and I'm sure the details are hyper-technical. https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=UDN https://www.invesco.com/us/financial-products/etfs/product-d...