Form 1099B Section 1256 Contracts question

[VAer]

Form 1099B Section 1256 Contracts:

Line 8 : Negative number

Line 9: Negative number

Line 10: $0

Line 11: Negative number

Where line 8 is sum of line 9 and line 11

I followed turbotax questions, and enter line 8 and line 11 (on form 1099B) to software questions 8 - Account Description and 11 - Total Losses. It ends up line 11 is capital loss on tax return form, which makes me confused. Why line 9 loss (realized in 2023) does not show up in tax return form?

What is the difference between line 8 and line 11? My understanding is line 8 should be reported as loss on tax return form, which TurboTax chooses line 11 -Total Loss as capital loss.

The issue is: what is the purpose of putting line 9 and line 10 (unrealized) in form 1099-B? I don't understand it, not sure if I should report line 8 or line 11 as capital gain/loss.

How should I enter form 1099B numbers to turbotax questions?   It seems that TurboTax question 8 - Account Description has nothing to do with form 1099 B line 8, what number should go to TurboTax question 11? Form 1099B line 8 or line 11?

Thanks.

[Mike9241]

line 8+line 9 on the 1099-B should equal line 11. if they don't talk to the broker

line 11 from the 1099-B, since it's a loss, is entered as a negative number on line 11 in the Turbotax screen.

that should do it with nothing in part II or III of the 6781.

if there are you may have answered question(s) on a previous screen incorrectly. 

[VAer]

@Mike9241 

Just sent you a private message, initially I did not post real numbers.

But line 8 = line 9 + line 11, it is TD Ameritrade and it is unlikely the form is wrong. I looked in previous years 1099B, line 8 is not equal to line 9 +line 11 either.

I always think line 8 should be entered to turbotax, since line 8 is the total loss. But I could be wrong, what is line 8 about?

[fanfare]

the "description" is just text that helps identify the report i.e. broker name.

The TurboTax panel looks mislabeled. That doesn't help.

[[removed ]]

Review the forms carefully before filing.

@VAer 

[fanfare]

I took back my comment, since I'm not familiar with the arithmetic that TD is doing.

On  form 6781, enter the result of marked-to-market  as of Dec 31 2023 in  Part I

That is the value that you want copied (40/60) to Schedule D.

@VAer