Only Box 11, needs to be entered since it is the 'Aggregate Profit/Loss on Contracts'. A Section 1256 contract is a type of investment defined by the IRS as a regulated futures contract, foreign currency contract, non-equity option, dealer equity option, or dealer securities futures contract.
What makes a Section 1256 contract unique is that each contract held by a taxpayer at the end of the tax year is treated as if it was sold for its fair market value, and gains or losses are treated as either short-term or long-term capital gains.
- Sign into your TurboTax Account
- Click on Pick up where you left off
- On the left side screen, select Federal then Wages & Income
- On the Wages and income screen, scroll down to Less Common Investments and Savings. You may need to click on Show more.
- Scroll down to Contracts and Straddles then Start/Edit/Review
- On the Any Straddles or Section 1256 Contracts? screen and answer Yes
- Continue with the onscreen interview until complete
You will find that TurboTax offers only two boxes for Line 11 (a gain or a loss) and that is all that has to be entered.
Previously posted by Employee Tax Expert DianeW777:
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