How to enter Section 1256 Option Contracts

[RobertB4444]

The contact info for TurboTax is here.

@Jim4AU 

[teboff]

I am using Turbotax online for 2022.  The instructions for entering 1256 contracts says to search for form 6781, then Jump to Form 6781.   There is no Jump to option in the search results.  I have tried and looked everywhere but cannot figure out how to get to this form.  This is very frustrating since this is the last piece of information I need to enter to complete my taxes.   Please help.

Thank you

[DoninGA]

@teboff Answered in your prior post for the same subject here - https://ttlc.intuit.com/community/taxes/discussion/re-section-1256-form-6781/01/2945039#M1075065

[zyufan]

Stonks,, in your postabove, how do you get Aggregate profit or (loss) on contracts = $4,467? Your Aggregate profit or (loss) should be $1,920 - $2,547 = $627, right?

Also, on form 6781, you don't tell the gain or loss should be entered on Part I or Part II. Moreover, the amount you enter should be Profit or (loss) realized ($1,920) or Aggregate profit or (loss), you don't tell. I think IRS asks to enter Aggregate profit or (loss), include both Realized and Unrealized profit or loss (Section 1256) no matter you sold or hold on 12/31 (end of the year), but you said you enter "11. Total Profits: 1920", which is wrong (box 11 is Aggregate profit or loss, while your $1,920 amount is realized Gain only). If you ignore your "Unrealized Profit or (loss) on open contracts: ($2,547)", then it would break IRS rule on "Section 1256", right?

[GeorgeM777]

You are correct in that any unrecognized gain on an open contract held at the end of the year needs to be reported on Form 6781, Part III.  Part III only relates to unrecognized gains.  If the original poster had an unrecognized loss at year end, there is no requirement to report such loss in Part III.  

@zyufan 

[wrshirleytaxes101]

The first thing you say is "Under the Federal Tab search for form 6781"  I am using TurboTax Premium online and there is no "Federal Tab."

[DoninGA]

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@wrshirleytaxes101 wrote:

The first thing you say is "Under the Federal Tab search for form 6781"  I am using TurboTax Premium online and there is no "Federal Tab."

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Click on Federal on the left side of the online program screen

Click on Wages & Income

Scroll down to Less Common Investments and Savings

On Contracts and Straddles, click on Start

Or enter Form 6781 in the Search box located in the upper right of the program screen.  Click on Jump to form 6781

[joshsisson]

An awful lot of words to avoid saying what needs to be said: "Our software is full of bugs, you should get a refund for this purchase, and use different software instead. We are incompetent and make the same mistakes year after year. Next year will be no different".

To paraphrase the OP's crystal clear question: 

Turbotax says: 

Broker's Name: 
8. Account Description:

11. Total Profits: 

11. Total Losses: 
Special handling: 

---------------------------------

Tax form 1099-B, Regulated Future Contracts and Options (Section 1256 Transactions) says:

8 Profit or (loss) realized in 2023 on closed contracts 
9 Unrealized profit or (loss) on open contracts - 12/31/2022 
10 Unrealized profit or (loss) on open contracts - 12/31/2023 
11 Aggregate profit or (loss) on contracts 

-----------------------------------

Turbotax Should Say: Look at your 1099-B, Futures and Options Category, and enter the values here:

8 Profit or (loss) realized in 2023 on closed contracts: Enter the value from the 1099-B box 8 here
9 Unrealized profit or (loss) on open contracts - 12/31/2022 :  Enter the value from the 1099-B box 9 here
10 Unrealized profit or (loss) on open contracts - 12/31/2023 :  Enter the value from the 1099-B box 10 here
11 Aggregate profit or (loss) on contracts :   Enter the value from the 1099-B box 11 here

There is no need for two "11" entries. A gain can be signified with a positive number, and a loss can be signified with a negative number, as is done many other times on the tax forms and software. 

[larkomarko]

i thought this was going to be so difficult.  You made it easy.     God bless you!!!

[Tax Amateur]

The first question is which gain to put in Box 11:

   (a) $1,920   (gain on closed positions)

   (b) $4,467  (the aggregate gain)

Based on the mark-to-market requirement, my presumption is that it's (b), but I'm not a tax expert

[Mike9241]

line 11 in Turbotax should be what's on line 11 of your 1099 - aggregate. 

to get to the form, it would be under Invesment income the contracts and straddles link. 

[Tax Amateur]

Thanks for the confirmation 👍👍

[chialan]

I bought TurboTax Premier.  I have question on where/how to transfer information from 1099B Line 8, 10, and 11 to TurboTax? 

[DawnC]

Boxes 8 Through 11 - Regulated Futures Contracts, Foreign Currency Contracts, and Section 1256 Option Contracts.   Search for contracts and use the jump to link.   Answer Yes, then enter your data on the next screens.  

Box 8. Shows the profit or (loss) realized on regulated futures, foreign currency, or Section 1256 option contracts closed during 2024. 

Box 9. Shows any year-end adjustment to the profit or (loss) shown in box 8 due to open contracts on December 31, 2023.

Box 10. Shows the unrealized profit or (loss) on open contracts held in your account on December 31, 2024. These are considered closed out as of that date. This will become an adjustment reported as unrealized profit or (loss) on open contracts—12/31/2024 in 2025. 

Box 11.  Boxes 8, 9, and 10 are all used to figure the aggregate profit or (loss) on regulated futures, foreign currency, or Section 1256 option contracts for the year.   Include this amount on your 2024 Form 6781.

Go to Forms Mode to enter the boxes directly on Form 6781.  @chialan 

[cdorr]

https://en.intuit.com/ttl-us/ls/content/[phone number removed]2319/tto-ty-23-contracts-straddles-for...

I found this with screen shots.