@VAer wrote:
Particularly I don't understand "carried back...".
Carried back simply means you can use the net loss in a prior tax year (i.e., you amend your prior return to include the net loss).
For Section 1256 contracts, that would be up to three prior tax years starting with the earliest tax year in which you have a net Section 1256 gain (i.e., the net loss carryback can only offset 1256 net gains).
