<derkire[at]gmail.com> wrote:

- quote -

The term ETF used to encompass any exchange-traded fund, which is
its literal meaning. Now, many people consider the term to not
include closed-end funds of any sort, including partnerships.

Steve

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On Apr 9, 3:09*pm, DF2 <replyvia[at]newsgroup_please.com> wrote:
- quote -

Yes, this is a PTP trading under he USO symbol
(but often referred to as an ETF by brokers and others).

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In misc.taxes.moderated, derkire[at]gmail.com wrote:

- quote -

I suspect you are referring to a PTP or a MLP rather that an ETF.

Publicly Traded Partnership
Master Limited Partnership
Exchange-Traded Fund

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Previous postings have covered various aspects of K-1 statements as
pertains to partnership-based ETF funds and the like.

I'm trying to understand the logic behind it all. I guess I somewhat
understand the concept of an "investement vehicle" (corporation,
partnership, etc) which is treated as a "passthrough entity" for tax
purposes. The point is if the vehicle does not pay taxes on its own
profits, then the owners must do so, whether or not the profits were
explicitly paid out. (Otherwise it would be a way to shelter against
taxes, indefinitely. It appears to make a lot of sense to have such a
rule.)

For example, I received a K-1 for 2008 which essentially says that the
ETF fund has some internal trading losses which I personally have not
realized yet (except maybe a paper loss on the ETF stock).

Supposedly, I shall enter the K-1 in my 2008 tax filing, and perhaps
use the loss against other income/gains.

What I do not understand is what happens when I sell the ETF, and
realize whatever paper gain or loss that exists at that point. WIll I
get another K-1 that cancels out the original one, now that I have a
concrete and quantifiable gain or loss? If not, could I not end up
having been taxed for a different gain/loss than what I actually
realized in the end? This is the part I do not understand.

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