User 86999

GRN and DBV: Indicative, But of What?

Whenever I see DBV or DBC or any of those grantor trusts, partnerships, a chilling creepy feeling runs through my spine. Why? Because of the taxing nightmare associated with these funds/etns. They generate K-1, which can actually show humongous income, which is completely unrelated to your actual gains/loss from the buying/selling of the fund; hence causing you to lose money at tax time even if you did make some from the purchase/sale of that fund. I have not seen any good treatment of the taxation issue related to these types of funds. I wonder if someone else has seen any.

Strategies for Currency Investors

Thanks for a rich store of information on currencies. I'm curious about the taxation issues. For instance, will FXM send you a K-1? There are stories of how people didn't make any money on some futures based etfs and still received K-1 that showed some phantom revenues that they had to pay taxes on? I'm still researching this whole K-1 issue in general, on what kind of futures does it apply to; commodities are for sure, such as DBV, DUG and all.