Hello @GeorgeM777,
I've read several threads on related subjects, and I found this one the closest (particularly your answer) to what I need to understand.
I am confused by the semantics of carryback vs carryover (carry forward). The notion of adjusting old tax return to take advantage of the current year losses seems very weird. Line 5 of form 6781 only mentions carryback but you also mention carry forward the loss to the next tax year. And this is exactly what I need to understand.
In my last year (2021) tax return I had section 1256 losses, in the amount, say, $4,234. I was allowed to deduct only $3,000 from my other income as shown on line 7 of Schedule D while line 6 shows $1,234 of allowed carryback.
In 2022 I had some profits (imagine that!) reported on the same section 1256 and, naturally, I hoped to subtract that "carried back" amount from this years profits but no - there are no offsetting losses on my Schedule D.
There are indications on the web that I need form 1045 but TT doesn't seem to generate it.
So, what should I do?
