Of the imported 1099-b transactions, I entered some into 1256 contracts section. Do I delete these transactions in the Stocks, etc section; to avoid duplicate reporting?

[MinhT1 · Accepted solution]

Yes, you must delete these transactions in the Stocks section.

Futures contracts are Section 1256 contracts for the IRS.

Please read this TurboTax article on how to report income on Section 1256 contracts.

You'll need to complete form 6781.

To do this in TurboTax, please follow these steps:

• Click on Search on the top right of your screen
• In the search box, type form 6781
• In the search result page, click on Jump to form 6781
• TurboTax will take you through a questionnaire where you can enter your information

[drewmg244]

Is there any  reason the brokerage would have not included the 1256 contracts in a separate section of the 1099-B, to denote their 1256 classification and values such as unrealized profit / loss?

[Anonymous]

don't know why pperhaps call broker  but 1256 contracts do not get entered on 1099-b/8949  they get entered on form 6781

here's alink to the form

https://www.irs.gov/pub/irs-pdf/f6781.pdf

and here's a link to pub 550

https://www.irs.gov/pub/irs-pdf/p550.pdf

[RL108]

In my case it is reported this way because the commodities are held in ETF's, so Schwab reported them as equity ETF's, but UNITED STATES COPPER INDEX ETF & TEUCRIUM CORN ETF also sent documentation stating these should be entered on form 6781, line 1.

So it would seem they should be removed from 1099B box A so as not to double report.

One thing I was wondering is would they be reported differently based on your tax reporting status, i.e. retail vs pro for example?