IRS Instructions Form 6781.
Don’t include in Part II a disposition of
any of the following.
• A position that is part of a hedging
transaction.
• A position that is part of a straddle if all
of the positions of the straddle are
section 1256 contracts.
In other words, for most run-of-the-mill active investors who trade futures,
this is of no concern. Part II can be ignored.
@Philbo
