STRADDLE OPTION LOSS so made 2 entries on 1099B's (1short@40% +1long @60%). Did Sch. D+ forms 6781&8949. CORRECT??? Or do I REMOVE 1099B entries and use Sch D 6781/8949?

[Coleen3 · Accepted solution]

The way to properly record this is as follows. You may want to delete the Schedule D entry so that it reported on the Form 6781.

Just enter Box 11 (gain or loss) in the appropriate TurboTax box.

To do this:

Under Investment Income, click Start/Update on "Contracts and Straddles"

Continue twice and check the box for Section 1256 contracts marked to market.

You will find that TurboTax offers only two boxes for Line 11 (gain or loss) and that is all that has to be entered.

[baker0122]

Thanks! Only note is that turbo tax did not use 60/40 rule as on brokerage statement but it did create a detailed form 6781. Before this - I found a way that seemed to work within the 1099B. Entered basic sale info then clicked into adjustments section and it asks key questions that led me to check box for straddle loss but created a schedule D and 8949 for them. Thoughts?

[Coleen3]

I only know about this ways of entering the information.