@VAer wrote:
It can be carried back for previous net capital gains too? So Section 1256 loss is not limited to carried back to offset previous section 1256 gain itself?
The amount you can carry back to any prior year is limited to the smaller of:
• The gain, if any, that you would report on line 16 of Schedule D (Form 1040) for that carryback year if only gains and losses from section 1256 contracts were taken into account; or
• The gain, if any, reported on line 16 of Schedule D (Form 1040) for that carryback year.
See https://www.irs.gov/pub/irs-pdf/f6781.pdf
