Form 6781 says "Corporations, partnerships, estates, and trusts are not eligible to make this election." (referring to section 1256 carry back.)
So if I read this right, lets say a complex example assumes approx $12,000 in 1256 losses for 2020 with about 7,000 of that in a trust, AND 2019 has less than 4,000 of non-trust 1256 gains, then it sounds like one could choose to do one of the following:
- take the time to amend 2019 with applicable 1256 loss amounts from 2020, and carry forward the rest (including amounts in a trust(?)), or
one could say to one's self "self, it ain't worth the time" and just carry forward the losses (albeit 3K per year), which would include all 1256 losses including those in a trust account(?)
It would be interesting to hear other opinions on this, particularly if I am right in using non-applicable 1256 carry back gains as carry forward losses, and if my trust/non-trust delineations are correct, and finally if one thinks it would be worth one's time.
