Form 1099B Section 1256 Contracts:
Line 8 : Negative number
Line 9: Negative number
Line 10: $0
Line 11: Negative number
Where line 8 is sum of line 9 and line 11
I followed turbotax questions, and enter line 8 and line 11 (on form 1099B) to software questions 8 - Account Description and 11 - Total Losses. It ends up line 11 is capital loss on tax return form, which makes me confused. Why line 9 loss (realized in 2023) does not show up in tax return form?
What is the difference between line 8 and line 11? My understanding is line 8 should be reported as loss on tax return form, which TurboTax chooses line 11 -Total Loss as capital loss.
The issue is: what is the purpose of putting line 9 and line 10 (unrealized) in form 1099-B? I don't understand it, not sure if I should report line 8 or line 11 as capital gain/loss.
How should I enter form 1099B numbers to turbotax questions? It seems that TurboTax question 8 - Account Description has nothing to do with form 1099 B line 8, what number should go to TurboTax question 11? Form 1099B line 8 or line 11?
Thanks.
