BIKR
Rogers AI Global Macro ETF
stock NYSE

I bought and then sold BIKR forecast contracts in a taxable account
The proceeds from the sale (which was less than the cost basic) are listed on my IBKR 1099-MISC line 3 (as other income). The cost basis is nowhere to be seen - so instead of taking a capital loss, Turbotax is trying to treat the proceeds a business income on Schedule C (self-employment income)
The 1099B has this language from IBKR:
> Forecast Contract Settled by Close-out Trades With Realized Net Losses
>This section includes all the Forecast Contracts that were settled by you in the 2024 taxable year by purchasing the opposite side for the same event (a "Close-out Transaction"), with respect to which you realized a net loss on these two paired trades. Two trades for the same underlying event are paired using FIFO (First-In-First-Out).
> This table includes information relating to the timing and cost basis for each Forecast Contract. Each Forecast Contract settled by a Close-out Transaction resulted in cash proceeds of USD $1.00 paid to you for each paired trades.
> The aggregated gross amount of each of these payments has been included in the amount listed under "2024 1099-MISC Miscellaneous Income Box 3 Other Income" on the first page of this Consolidated IRS Form 1099 (see above).
> **However, this amount as included in Box 3 does not take into account the cost basis of each Forecast Contract, and as a result it does not represent your taxable income and should be adjusted using the cost basis information provided below to compute your tax liability with respect to each transaction, if you determine that you can deduct the losses from Forecast Contracts on your tax return.**
> Other than the amount of cash proceeds listed in the "Proceeds" column, the details set forth in this table are not reported to the IRS

So in other words, I have to override the values that IBKR is supplying to the IRS on the 1099 (by only listing the proceeds, not the basis) AND I have to make the decision if the losses are deductible. Overriding numbers that are supplied on a 1099 is a huge red-flag and audit magnet so I'm sure that's going to end up fucking me over but they've left me no choice with the way they are reporting this.
I would have thought that IBKR had its duck in a row before it rolled out these contracts. If I had known they were going to screw me over like this I wouldn't have bother messing with them.

I bought and then sold BIKR forecast contracts in a taxable account
The proceeds from the sale (which was less than the cost basic) are listed on my IBKR 1099-MISC line 3 (as other income). The cost basis is nowhere to be seen - so instead of taking a capital loss, Turbotax is trying to treat the proceeds a business income on Schedule C (self-employment income)
The 1099B has this language from IBKR:
> Forecast Contract Settled by Close-out Trades With Realized Net Losses
>This section includes all the Forecast Contracts that were settled by you in the 2024 taxable year by purchasing the opposite side for the same event (a "Close-out Transaction"), with respect to which you realized a net loss on these two paired trades. Two trades for the same underlying event are paired using FIFO (First-In-First-Out).
> This table includes information relating to the timing and cost basis for each Forecast Contract. Each Forecast Contract settled by a Close-out Transaction resulted in cash proceeds of USD $1.00 paid to you for each paired trades.
> The aggregated gross amount of each of these payments has been included in the amount listed under "2024 1099-MISC Miscellaneous Income Box 3 Other Income" on the first page of this Consolidated IRS Form 1099 (see above).
> **However, this amount as included in Box 3 does not take into account the cost basis of each Forecast Contract, and as a result it does not represent your taxable income and should be adjusted using the cost basis information provided below to compute your tax liability with respect to each transaction, if you determine that you can deduct the losses from Forecast Contracts on your tax return.**
> Other than the amount of cash proceeds listed in the "Proceeds" column, the details set forth in this table are not reported to the IRS

So in other words, I have to override the values that IBKR is supplying to the IRS on the 1099 (by only listing the proceeds, not the basis) AND I have to make the decision if the losses are deductible. Overriding numbers that are supplied on a 1099 is a huge red-flag and audit magnet so I'm sure that's going to end up fucking me over but they've left me no choice with the way they are reporting this.
I would have thought that IBKR had its duck in a row before it rolled out these contracts. If I had known they were going to screw me over like this I wouldn't have bother messing with them.