How to report Trading Loss?

You need a 1099-B from your broker and the Premier version of TT to report the loss.

are you a trader that made the 475(f) election that's in effect for 2022? if so, then entry is on 4797 for trading gain or loss but certain trading expenses go on schedule C.

 if no election trading regulated futures contracts go on form 6781, stock and option trading (non 1256 contracts) go on form 8949 or schedule D for those where proceeds and cost with no adjustments are reported to the IRS (types A and D)  trading in foreign currencies may me section 988 income which is also reported differenly.

 

 

Trading losses are typically posted from a 1099-B that your broker provided for you.  They are often available online.

To post trading information.

 

1. Start at Federal
2. Wages and Income
3. Scroll to Investments & Savings
4. Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) [Start or Revisit]
5. Did you have investment income in 2022? - Yes
6.  Get ready to be impressed  Continue
7. You can enter your information to import the details
8. —----------- OR —------------------------
9. Select Enter a different way.
10. Choose the Box Stocks, Bonds, Mutual Funds Continue
11. Follow the interview to post your information.

At this later date you may wish to file an extension.

 

On the sidebar go to:

1. Tax Tools
2. Then select Tools
3. In the four green boxes select Tax Topics
4. Type extension
5. Need More Time to File Your Return?
6. Select Start Easy Extension
7. This will give you until October 16th, 2023 to file.

TurboTax file an Extension

 

@Mike9241 Hoping for a little help here.

I elected 475(f) in prior return.  My question is how to enter Section 1256 contract losses?

I've read I should put all my trading activity in Form 4797, but for 1256 contracts there is no Proceeds or Cost Basis, just the loss amount. 

I've also read that these should be entered on Form 6781 (and then on Form 4797), but still how? 

 

I originally though just use Proceeds $0 and then enter the loss amount as Cost Basis, but that seems sketchy to me.  Any help would be greatly appreciated!

Within the program, do a search for "Form 6781" and you will see a Jump to link that will lead to the starting point. The screen will say: Any Straddles or Section 1256 Contracts? Follow the steps from there. 

 

@Troy09