Carry back losses for 1256 contracts

[musica117]

I had long term capital gain last year and 1256 contracts losses. This year I have 1256 losses and long term capital gain. 

Lets say I had

50000 in long term gain in 2021

10000 in 1256 losses in 2021

2022 -

15000 in long term gain

70000 in 1256 losses

Can I carry back any of my 22 losses and amend 2021 returns even though I didn't have any 1256 gains to offset?

Turbotax asked me if I wanted to carryback and so I started reading about it and am lost now.

Thanks so much for your help!!

[Mike9241]

can't answer the law for 2022 per IRC section 1212(c)(1)(A) is a 3 year carryback

tentative loss carryback  is $70000 less the $15000 in gain less the actual capital loss deduction allowed for 2022 which normally would be $3000

the loss that can be used in the c/b year is the smaller of a) the net gain from1256 contracts for that year or b) the net capital gain shown on line 16 of schedule D for that year

any amount not used is carried to the second prior year following the same rules then the prior year again following the same rules. if you have no net 1256 gains for 2019 or 2020 then because there is also a loss in 2021 you don't have a carryback.

[musica117]

Thanks so much @Mike9241 

I am not quite sure what you meant. You said you can't answer the law for 2022?? 

My question comes down to can I carry back even if there are no gains in 1256 to offset for the prior year. Do you know how I'd proceed? Thanks!!

[musica117]

I am confused with this IRS statement -

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.

Please help!!