RobertB4444
Expert Alumni

Business & farm

@MGuercini  Box 11c is used to report section 1256 gains and losses.  Section 1256 contracts are named for the IRS code section that refers to them and they are investments that show gains and losses based on underlying value - not on whether you sold them or not.

 

Here is a good TurboTax article on 1256 contracts.

 

The tax treatment for the loss and gain that you have depends somewhat on what the underlying investment is but it sounds like your CPA friend has the right idea - rolling that 13K loss forward to wipe out the 13K gain seems like your best plan.  Then the 15K gain for the sale is just taxed as long term capital gains.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"