SPX options

[Plheger]

How do I show on Turbo tax for profits onSPX options that have a40/60 split: 40% as ordinary income and 60% as capital gains income?

[MinhT1]

SPX options are Section 1256 contracts for the IRS.

Please read this TurboTax article on how to report income on Section 1256 contracts.

You'll need to complete form 6781.

To do this in TurboTax, please follow these steps:

.

• Click on Search on the top right of your screen
• In the search box, type form 6781
• In the search result page, click on Jump to form 6781
• TurboTax will take you through a questionnaire where you can enter your information
• TurboTax will automatically split your gains between long-term and short-term to report them on your tax return.

[Mike9241]

by the way, 60% is long-term capital gain 40% is short-term capital gain which will get taxed as ordinary income if you have no short-term capital losses from other sources. if you do have other STCL they will offset the STCG from the 1256 contracts.