https://en.wikipedia.org/wiki/1256_Contract
I don't quite understand it, could someone please explain it in plain language with example. For example, if I have section 1256 contract net loss of $30,000 this year (just an example), how does it affect my tax return. Particularly I don't understand "carried back...".
I understand that: if I have capital loss of $30,000, then I can claim $3000 every year. And I can carry the loss forward to next 10 years.
