Thanks for the reply. Line 16 of Schedule D includes capital gains from stocks also (along with gains from 1256 contracts ). Does it mean carryback losses of 1256 contracts offsets entire amount mentioned on line 16 of Schedule D (irrespective of the source of gains) of the previous year? My 1256 losses for current tax year are huge (they need to carried forward even after carryback to 3 previous years).
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there are also limits to the amounts that can be used in the c/b year.
smaller of (these are before the 1256 c/b)
1) net 1256 gains for c/b year
2) line gain 16 of schedule D.
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