Form 6781: Gains and Losses from Section 1256 Contracts and Straddles

[aptiva4tta17]

In Dec 2022, I bought a Call (option) on BSM due 1/9/2024 @ $17.50 Strike; and sold a Put on BSM due the same date @ $15.0 Strike. These are Section 1256 Contracts. [None of the contracts is hedging/offsetting/straddle transaction.]

On 12/31/2022, they were Marked to Market with a loss on both Options totalling $40.

In Oct, 2023, I closed out both options -- 3 days apart. I have a Loss on the Call of $150 and a Gain of $250 on the Put (both from the 12/31/2022 Marked to Market value) -- with a net gain of $100 between the two.

On the 1099-B, Section 1256 reports $40 gains in Box 11 (the reversal of the 2022 Loss).

According to Form 6781 instructions, closing out the 1256 Contracts is reported in Part I. The $40 gain goes on Line 1. But I don't know where to the put the net gain of $100 (from 12/31/2022 Market Value). On Line 4?? If yes, what info do I put the the "attached statement"?

TIA

[RobertB4444]

I would enter it into part 1 as well and avoid attaching the statement.  Just enter both transactions there and then the net will be fine.

@aptiva4tta17