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Level 2
posted Mar 23, 2024 9:09:31 PM

SECTION 1256 CONTRACTS

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?

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1 Best answer
Level 15
Mar 25, 2024 10:01:41 PM

Look for the TurboTax area for "Section 1256 Contracts"

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

 

@Brian94582 

@gc32 

 

14 Replies
Level 15
Mar 23, 2024 11:28:46 PM

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

 

Level 2
Mar 24, 2024 8:08:32 AM

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?

Level 3
Mar 24, 2024 6:36:54 PM

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 

Level 2
Mar 25, 2024 7:25:49 PM

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

Level 3
Mar 25, 2024 9:52:19 PM

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.

Level 3
Mar 25, 2024 9:54:15 PM

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

Level 15
Mar 25, 2024 10:01:41 PM

Look for the TurboTax area for "Section 1256 Contracts"

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

 

@Brian94582 

@gc32 

 

Level 3
Mar 25, 2024 10:10:00 PM

@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.

Level 15
Mar 26, 2024 6:17:09 AM

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 

Level 3
Mar 26, 2024 9:05:43 PM

@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.

 

Level 2
Mar 28, 2024 7:25:09 PM

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

New Member
Mar 30, 2024 4:12:50 AM

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?

New Member
Oct 13, 2024 11:43:09 AM

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.

Level 15
Oct 13, 2024 11:57:21 AM

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