Futures and options contracts are Section 1256 contracts for the IRS.
Please read this TurboTax article on how to report income on Section 1256 contracts.
The net Section 1256 losses can be carried forward to future years.
You'll need to complete form 6781. The losses will transferred by TurboTax to Schedule D.
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
- TurboTax will then automatically split your gains between long-term and short-term to report them on your tax return.
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