first of all there is a 3 year c/b for 1256 losses.
B. Excess net section 1256 contracts loss over gains -20,000
Capital gains stocks +2000
Net losses on both combined -18000
Plus +3000
Net section 1256 contract loss -15000 to carryback to previous year. This option is forcing you to take an overall 3000 loss on current taxes. That's because a taxpayer is allowed (required to use) $3,000 of capital losses against other income each year. so you are correct except if AGI (line 11) is negative then less capital losses are actually used increasing the amount that can be carried back. example if AGI is a negative $2000 you are actually only using $1000 in the current year so the c/b $16K
utilization in any carryback year provided it does not produce or increase a net operating loss
smaller of 1) line 16 schedule d (so this line must be positive) or 2) net 1256 gains for the year.
