> Another question: If I have section 1256 loss this year and if I have section 1256 gain in last 3 years. If I don't amend the prior returns, can I just carry all section 1256 loss to future years (offset future capital gain)?
I've run into this situation, and want to further clarify something. My tax firm (Dallo Law) said that Section 1256 losses must first be carried back three years in order, and only the unused amount that is not absorbed in years -3 and -2, can be applied to year -1 (previous year). So you can't apply all the Section 1256 loss to the past year, if you've had losses in the two years before it.
