I have a 1099-B that I've imported from my broker into TurboTax Desktop from which I traded various options strategies such as credit spreads, Iron Condors, and possibly a butterfly or two. (I primarily sell options but I have bought a few outright as well.) My understanding is that since those are strategies that employ counter positions, the IRS would classify those strategies as straddles. (Please correct me if I'm mistaken)
When I switch to Forms view, I can see that the individual puts / calls that I purchased have successfully been imported into Schedule D on line 1b. When I double click the numbers, it takes me to form 8849 which shows each buy / sell for each call and put leg of the various strategies I used.
My question is, since TurboTax has successfully imported my brokerage 1099-B and already has the list of each transaction, and has calculated a gain / loss on Schedule D line 1b, do I now need to go through each purchase to identify straddles and enter each straddle into TurboTax so that the gains from Straddle positions show up on Schedule D line 4c (Form 6781 Gains and Losses from Section 1256 Contracts and Straddles)? If so, won't that end up in TurboTax double counting my income / losses?
What am I missing? And for future years, how would I handle this if I sell a credit spread that crosses into the new year?
Thanks in advance
