I have sizeable Sec 1256 Losses that I plan to carry back to 2019 and will be fully offset by that year. I've spoke to an EA and a CPA on TT online and as noted here TT does not support Form 1045 Tentative Refund. I read the 1045 Instructions multiple times and there is NOTHING about how to complete Form 1045 for Section 1256 Carryback losses. There is a Schedule A to complete and it does not apply to 1256 carrybacks. Thus anyone advising others to complete Form 1045 for 1256 carrybacks ought to think twice as I see it as complete waste of time if not a dead-end. Form 1045 is guided by Pub 536: Net Operating Losses for Individuals. Pub 536 also has no mention of Section 1256 Contracts being eligible...not a word in the entire Document. Going through the form, I don't see how Form 1045 can be used for 1256 Carry-backs or Carry-forwards.
According to TT CPA and Pub 536 Page 5, I can elect to file a 2019 1040X instead of Form 1045. Amended returns take quite a bit longer (6 mos+) vs 90 days for the 1045.
According to Pub 536 page 5-6, under the header FORM 1040X - on page 6 says "one must attach a computation of your NOL, using form 1045, Schedule A, and, if it applies, your NOL carryover using Form 1045. when submitting the 1040X". Is this for real? I have tried to complete Schedule A - but it does not work for Section 1256 carrybacks. I understand I will not get advice from TT on Form 1045. But if Schedule A form is required for the 1040X and TT supports 1040X returns, then they should support Form 1045 Sch A. What am I missing?
Since there is NO instructions on how to complete 1045 for Section 1256 contract carrybacks AND I can't get in to see a CPA to do this within 3-4 months I will file the 1040X without Form 1045 Schedule A. If anyone has actually done this I'd like to know what forms are needed to be successful. Will a 2019 1040X with a revised 1256, and a revised schedule D be enough? TIA. Mahalo.
