SECTION 1256 CONTRACTS

[gc32]

My broker has summary of proceeds, gains and losses, adjustments and withholding section which gives net short term and long term gains/losses. I also have losses under Section 1256 contracts. I'm not sure if turbo tax is incorporating them in the capital gains/losses calculations. Can anyone help here?

[Mike9241]

1256 contracts net gain/loss form each broker goes through form 6781 - see investment section contracts and straddles for entry. there a 60 LT/ 40 ST split that end up only lines 4C and 11D of schedule d

[gc32]

Aaah. Thanks, I had exported transactions from my broker, but those numbers don't seem to be accounted for in Schedule D. Is there anything else that needs to be done to incorporate that?

[Brian94582]

I have the same issue as gc32. My K1 contracts and straddles are showing up on Form 6781, but the Section 1256 Contracts reported on my 1099-B from my broker are NOT showing up on the 6781. I suppose I have to manually enter them.

This, along with Taxable Accrued Interest from Bonds, which is also not being imported from my 1099-B is causing me to have to go through all the numbers in detail and manually enter what is missing. This is rather annoying when the data is on the 1099-B 

[gc32]

Did you manually add to the net gains/losses on schedule D?

[Brian94582]

gc32...... well as I said "I suppose I'll have to manually enter them". So in the absence of anyone telling me that they're not being automatically imported because I'm not supposed to deduct them, I suppose I'll have to manually enter them.

[Brian94582]

Let me clarify. I suppose I'll have to enter them on the 6781 and then they'll carry thru to Sched D

[fanfare · Accepted solution]

Look for the TurboTax area for "Section 1256 Contracts"

There you will enter the relevant amounts from your futures  1099-B.

@Brian94582 

@gc32 

[Brian94582]

@fanfareof course I can enter them manually. My point is: why isn't Turbotax picking them up from the 1099B and importing them automatically. It means I have to go through every entry on my 1099B (I have hundreds of pages) and make sure that everything has been imported into Turbotax. That's not what I expect from this product.

[fanfare]

Did you have open contracts on Dec 31?

If so, you may have to do some arithmetic, I'm not sure how this is displayed on 1099-B since I never had that situation.

In any case, don't select any of the Form's options.

You only enter the net gain/loss for 2023 in one box supplied by TurboTax.

There are no details to enter.

Leave Part II and Part III empty.

@Brian94582 

[Brian94582]

@fanfare. Got it, thanks. This is how it's displayed on my 1099B. BOIL ETF: yes, lousy investment, don't laugh!! I still own it. It's a futures contract I think, so it's marked to market every year. I still don't seem to be able to get my question answered though. If this loss is being furnished to the IRS, why isn't Turbo tax importing it. I could easily miss this if I rely on Turbotax to know what it's doing, which is obviously not a good idea.

[gc32]

Yeah. It’s stupid that it’s not automatically accounted for. Glad I caught it. I’ll enter it manually now. 

[taxeddie]

No matter what I select in the Elections or if I leave them all unselected TurboTax wants me to enter in each of my hundreds of transactions.  I am not seeing where I can just enter the net values (e.g. net loss as shown on my 1099).  

Also, is there a way to just jump to the 6781 form?

[brewjo]

Where do you input this in Turbotax? It seems to have been removed.  I can't find it. Any help here would be greatly appreciated.

[Mike9241]

in the investment section go to contracts and straddles do not enter on 8949 and you can enter the net for each broker as a single line item. no details of each trade is required

with desktop enter 6781 in jumpto/search box for forms