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Question about Section 1256 (and what to select)?
I received my 1099 from TD Ameritrade and everything (mostly) uploaded correctly using my information.
The one issue I'm having is there was a small portion that was broken out on Section 1256 Contracts that won't automatically upload. I uploaded a quick picture of that section to show what I traded (just regular options).
On Line 8 of the 1256 Contract (Profit or (loss) realized in 2020 on closed contracts), I have a -1,453.67.
On Turbo Tax it's asking me a set of questions to input this information and I'm not sure what to do.
1. Any straddles or Section 1256 contracts (I assume the answer is yes)
- Yes
- No
2. Any elections? (No idea what to select here)
- Mixed Straddle Election
- Straddle-by-straddle identification election
- Mixed
- Net section 1256 contracts loss election
3. Contracts and Straddles (No idea what to select here)
- Section 1256 contracts marked to market
- Losses from straddles
- Gains from straddles
- Unrecognized gains from positions held on December 31, 2020
- None of the above
4. How to report your transactions? (I assume the answer is I'll report the totals for each broker)
- I'll report the totals from each broker
- I'd rather report each transaction
5. Special Handling (I assume the answer is None of the above)
- Hedging transaction
- Foreign currency - ordinary income
- Foreign currency - treat as capital gain or loss
- None of the above
Any advice on what to select here?