Faq Body

{
  "className": "",
  "heading": "Taxation FAQs",
  "faqs": [
    {
      "question": "I understand that Volatility, Commodity and Currency ProShares ETFs (“Fund” or “Funds”) are treated as partnerships for tax purposes. Can you give specifics on how I can expect my investment to be taxed?",
      "answer": "<p>Partnerships are \"pass-through\" entities. The income and expenses of each Fund \"flow through\" to its shareholders. (This differs from mutual funds and most ETFs registered under the Investment Company Act of 1940, which pass through taxable income and capital gains in the form of distributions reported on a Form 1099.) Each shareholder of Volatility, Commodity or Currency ProShares ETF is directly responsible for reporting his or her pro rata portion of income, gains, losses, deductions or other taxable events in the ETF for the calendar year.</p> <p>While investors may incur trading profits or losses through buying and selling the Funds, they are also subject to tax on their portion of any income or gains passed through by the Trust. In addition to income and gains, each Fund can also pass through losses, which shareholders may use to reduce their personal taxes. The tax treatment of income, gains or losses depends on the Fund’s underlying positions. For example:</p> <ul> <li>The Funds will earn income from debt securities and overnight investments. An investor’s pro rata portion of that income will be taxed at the investor’s ordinary income tax rate.</li> <li>The Funds will invest in a range of derivative instruments, including futures and forward contracts. In general, open futures positions will be marked to market, with their gains and losses reportable as 60% long-term and 40% short- term. The reporting of gains and losses may vary depending on the specifics of a contract.</li> <li>Commodity and Currency ProShares also enter into swap agreements and non-currency forwards that generally produce capital gains/losses that are likely short-term in character.</li> </ul>",
      "id": "967f56d5-6d22-4682-b7b0-2fa2a411e197"
    },
    {
      "question": "How do the Funds pass through capital gains or income to the investor?",
      "answer": "<p>Unlike mutual funds and most ETFs, the Funds are not expected to make distributions with respect to capital gains or income. The Funds are treated as partnerships for tax purposes, so an investor’s allocated share of a Fund’s income, gains, losses and deductions is reported on a Schedule K-1. Investors will not receive a Form 1099-DIV, issued by most mutual funds and other ETFs, which itemizes the taxable distributions received by the investor.</p> <p>From a tax perspective, any distributions from the Fund that might occur will be characterized as nontaxable return of capital (lowering the investor’s cost basis). Additionally, each investor’s allotment of the Fund’s taxable income, as reported on the Schedule K-1, should increase or decrease the investor’s cost basis.</p> <p>Monthly GAAP financial statements for each Fund are posted on our website on each Fund’s Overview page..</p>",
      "id": "731238ab-d369-4252-844c-7331c3b6cb12"
    },
    {
      "question": "Why do the figures on my Schedule K-1 differ from the figures on my tax information from my broker?",
      "answer": "<p>Schedule K-1s will reflect your pro rata portion of income, gain, losses, or deductions from fund-driven activities, which are actions the Fund has taken as part of its operation, whereas your 1099-B/R will reflect proceeds from sales of ETFs.</p> <p>As a result, your Schedule K-1 tax package may include a Sales Schedule which provides instructions on how to compute your gain or loss to fully reflect your experience as a shareholder and a partner of the Fund.</p> <p>If you sold shares and did not see a copy of your Sales Schedule with your Schedule K-1 tax package, please contact Tax Package Support at 866-949-5539.</p>",
      "id": "2270bdee-74a4-4cf7-a6f6-1ae3dd40decb"
    },
    {
      "question": "How does ProShares calculate my pro rata portion of a particular Fund?",
      "answer": "<p>Schedule K-1s will reflect your pro rata portion of income, gain, losses, or deductions from fund-driven activities, which are actions the Fund has taken as part of its operation, whereas your 1099-B/R will reflect proceeds from sales of ETFs.</p> <p>As a result, your Schedule K-1 tax package may include a Sales Schedule which provides instructions on how to compute your gain or loss to fully reflect your experience as a shareholder and a partner of the Fund.</p> <p>If you sold shares and did not see a copy of your Sales Schedule with your Schedule K-1 tax package, please contact Tax Package Support at 866-949-5539.</p>",
      "id": "a739b1ac-4123-4472-b411-6da4f58a33f3"
    },
    {
      "question": "If I purchased shares in a Fund, what is my tax reporting responsibility for this investment?",
      "answer": "<p>Schedule K-1s will reflect your pro rata portion of income, gain, losses, or deductions from fund-driven activities, which are actions the Fund has taken as part of its operation, whereas your 1099-B/R will reflect proceeds from sales of ETFs.</p> <p>As a result, your Schedule K-1 tax package may include a Sales Schedule which provides instructions on how to compute your gain or loss to fully reflect your experience as a shareholder and a partner of the Fund.</p> <p>If you sold shares and did not see a copy of your Sales Schedule with your Schedule K-1 tax package, please contact Tax Package Support at 866-949-5539.</p>",
      "id": "dcc1c5e4-179e-4089-9c35-012f8be7d61c"
    },
    {
      "question": "If I sell shares in a Fund, what is my tax reporting responsibility for this transaction?",
      "answer": "<p>Schedule K-1s will reflect your pro rata portion of income, gain, losses, or deductions from fund-driven activities, which are actions the Fund has taken as part of its operation, whereas your 1099-B/R will reflect proceeds from sales of ETFs.</p> <p>As a result, your Schedule K-1 tax package may include a Sales Schedule which provides instructions on how to compute your gain or loss to fully reflect your experience as a shareholder and a partner of the Fund.</p> <p>If you sold shares and did not see a copy of your Sales Schedule with your Schedule K-1 tax package, please contact Tax Package Support at 866-949-5539.</p>",
      "id": "fea7ee69-d219-42de-bae0-628ba79138d8"
    },
    {
      "question": "I didnt receive any cash disbursements from my investment in the Fund(s). Why are there reportable items on my K-1 that are subject to tax?",
      "answer": "<p>Schedule K-1s will reflect your pro rata portion of income, gain, losses, or deductions from fund-driven activities, which are actions the Fund has taken as part of its operation, whereas your 1099-B/R will reflect proceeds from sales of ETFs.</p> <p>As a result, your Schedule K-1 tax package may include a Sales Schedule which provides instructions on how to compute your gain or loss to fully reflect your experience as a shareholder and a partner of the Fund.</p> <p>If you sold shares and did not see a copy of your Sales Schedule with your Schedule K-1 tax package, please contact Tax Package Support at 866-949-5539.</p>",
      "id": "fab236d8-5bdc-45ae-9de4-0f0fa5ec7da0"
    },
    {
      "question": "When can I expect to receive my Schedule K-1?",
      "answer": "<p>Schedule K-1s will reflect your pro rata portion of income, gain, losses, or deductions from fund-driven activities, which are actions the Fund has taken as part of its operation, whereas your 1099-B/R will reflect proceeds from sales of ETFs.</p> <p>As a result, your Schedule K-1 tax package may include a Sales Schedule which provides instructions on how to compute your gain or loss to fully reflect your experience as a shareholder and a partner of the Fund.</p> <p>If you sold shares and did not see a copy of your Sales Schedule with your Schedule K-1 tax package, please contact Tax Package Support at 866-949-5539.</p>",
      "id": "da58ae08-b256-4598-ab02-5a8086d93d4b"
    },
    {
      "question": "Can I receive my K-1 information any earlier?",
      "answer": "<p>Schedule K-1s will reflect your pro rata portion of income, gain, losses, or deductions from fund-driven activities, which are actions the Fund has taken as part of its operation, whereas your 1099-B/R will reflect proceeds from sales of ETFs.</p> <p>As a result, your Schedule K-1 tax package may include a Sales Schedule which provides instructions on how to compute your gain or loss to fully reflect your experience as a shareholder and a partner of the Fund.</p> <p>If you sold shares and did not see a copy of your Sales Schedule with your Schedule K-1 tax package, please contact Tax Package Support at 866-949-5539.</p>",
      "id": "1506f5da-270b-45d6-ba93-52b6712a23e1"
    },
    {
      "question": "Do I have to report a Schedule K-1 if my shares were held in a non-taxable account?",
      "answer": "<p>Schedule K-1s will reflect your pro rata portion of income, gain, losses, or deductions from fund-driven activities, which are actions the Fund has taken as part of its operation, whereas your 1099-B/R will reflect proceeds from sales of ETFs.</p> <p>As a result, your Schedule K-1 tax package may include a Sales Schedule which provides instructions on how to compute your gain or loss to fully reflect your experience as a shareholder and a partner of the Fund.</p> <p>If you sold shares and did not see a copy of your Sales Schedule with your Schedule K-1 tax package, please contact Tax Package Support at 866-949-5539.</p>",
      "id": "6b4c4142-bf7b-4b8c-88e5-80c423e7d328"
    },
    {
      "question": "Will I get a K-1 if I only bought shares to cover a short position?",
      "answer": "<p>Schedule K-1s will reflect your pro rata portion of income, gain, losses, or deductions from fund-driven activities, which are actions the Fund has taken as part of its operation, whereas your 1099-B/R will reflect proceeds from sales of ETFs.</p> <p>As a result, your Schedule K-1 tax package may include a Sales Schedule which provides instructions on how to compute your gain or loss to fully reflect your experience as a shareholder and a partner of the Fund.</p> <p>If you sold shares and did not see a copy of your Sales Schedule with your Schedule K-1 tax package, please contact Tax Package Support at 866-949-5539.</p>",
      "id": "a7ba9d79-505c-4599-81c2-c76d458ea16d"
    },
    {
      "question": "Is any of the allocated income Unrelated Business Taxable Income (UBTI)?",
      "answer": "<p>Schedule K-1s will reflect your pro rata portion of income, gain, losses, or deductions from fund-driven activities, which are actions the Fund has taken as part of its operation, whereas your 1099-B/R will reflect proceeds from sales of ETFs.</p> <p>As a result, your Schedule K-1 tax package may include a Sales Schedule which provides instructions on how to compute your gain or loss to fully reflect your experience as a shareholder and a partner of the Fund.</p> <p>If you sold shares and did not see a copy of your Sales Schedule with your Schedule K-1 tax package, please contact Tax Package Support at 866-949-5539.</p>",
      "id": "5bb7b96b-0766-4f9b-a66f-0577802c52e9"
    },
    {
      "question": "I have questions about the Schedule K-1. Where can I get help?",
      "answer": "<p>Schedule K-1s will reflect your pro rata portion of income, gain, losses, or deductions from fund-driven activities, which are actions the Fund has taken as part of its operation, whereas your 1099-B/R will reflect proceeds from sales of ETFs.</p> <p>As a result, your Schedule K-1 tax package may include a Sales Schedule which provides instructions on how to compute your gain or loss to fully reflect your experience as a shareholder and a partner of the Fund.</p> <p>If you sold shares and did not see a copy of your Sales Schedule with your Schedule K-1 tax package, please contact Tax Package Support at 866-949-5539.</p>",
      "id": "9c20a81f-d3b7-441b-a6d9-db8873a0c5ad"
    },
    {
      "question": "ProShares investors should refer to the applicable ProShares prospectus for important tax information. Where can I obtain a prospectus?",
      "answer": "<p>Schedule K-1s will reflect your pro rata portion of income, gain, losses, or deductions from fund-driven activities, which are actions the Fund has taken as part of its operation, whereas your 1099-B/R will reflect proceeds from sales of ETFs.</p> <p>As a result, your Schedule K-1 tax package may include a Sales Schedule which provides instructions on how to compute your gain or loss to fully reflect your experience as a shareholder and a partner of the Fund.</p> <p>If you sold shares and did not see a copy of your Sales Schedule with your Schedule K-1 tax package, please contact Tax Package Support at 866-949-5539.</p>",
      "id": "c529e7f8-dc2e-427c-82ac-fd1ddf52d063"
    },
    {
      "question": "What if the information reported in my tax package is incorrect?",
      "answer": "<p>Schedule K-1s will reflect your pro rata portion of income, gain, losses, or deductions from fund-driven activities, which are actions the Fund has taken as part of its operation, whereas your 1099-B/R will reflect proceeds from sales of ETFs.</p> <p>As a result, your Schedule K-1 tax package may include a Sales Schedule which provides instructions on how to compute your gain or loss to fully reflect your experience as a shareholder and a partner of the Fund.</p> <p>If you sold shares and did not see a copy of your Sales Schedule with your Schedule K-1 tax package, please contact Tax Package Support at 866-949-5539.</p>",
      "id": "bfcd893f-28df-420d-92d4-97fe7c87335a"
    }
  ]
}