I traded futures contracts throughout 2023 (futures only, no straddles). I maintained an open position on December 31, 2023. Given this scenario and considering the mark-to-market principle that treats contracts as if they were sold at fair market value on the last trading day of the year, I have two specific questions regarding how to accurately report this for Form 6781 in TurboTax:
Unrecognized Gains Reporting: Considering that my open positions are treated as sold for their market value on December 31, 2023, do I need to check any specific box in TurboTax related to "Unrecognized gains from positions held on December 31, 2023" for Section 1256 Contracts and Straddles? Is it necessary to fill out Part III for Unrecognized Gains on Form 6781, or is this step redundant due to the mark-to-market rule of these contracts?
Summary of Section 1256 Contracts: For the "Section 1256 Contracts Summary" in TurboTax, should I only enter the Aggregate P&L amount (the aggregate P&L combining both realized and unrealized P&L for the year 2023) For clarity, here are the items available on my broker's tax report:
- Realized loss on futures contracts:
- Realized loss on futures options:
- Total realized loss reported:
- Unrealized P/L on futures as of 12/31/23:
- Unrealized P/L on options as of 12/31/23:
- Total unrealized P/L reported:
- Aggregate P&L combining lines 8, 9, and 10:
