How to enter Section 1256 Option Contracts

[Tax Amateur]

cdorr - the link you provided requires yet another login. Suggest you take a snapshot of the referenced page and upload the snapshot in your reply. (snapshot of login included here)

[Jim4AU]

Dave,

This section of TT has been problematic for years, as it's very difficult to follow.  Any chance of getting to talk with someone at TT after tax season about how to make this easier?  Thanks.

Jim

[Jim4AU]

Is this the general help number, where I can expect to be on hold for an hour only to talk to someone in Bangaladesh who can't spell TurboTax?  

Sorry, but I've been trying to get the addressed for at least 4 years.  The last actual human I spoke to at TT a couple of years ago didn't know what Section 1256 was but was certain the problems had been addressed.

[celiadorr]

To find form 6781, go to tax tools then tools,  Select topic.  Type in the form 6781 and it should take you directly there. 

[dhawal55]

What do you enter in the box for "Amount to be Carried Back"?

[DaveF1006]

For the "amount to be carried back", this box is only used if you are filing a Section 1256 loss carryback to prior years (allowed for net losses only). Section 1256 contracts have a special rule: If you have a net loss on Section 1256 contracts for the year, the IRS allows you to carry that loss back up to 3 years — but only to years in which you had gains from Section 1256 contracts.

The good news is that most taxpayers never use the “Amount to be carried back” box at all, and TurboTax only shows it because the IRS allows a very specific, optional election. If this is the case, you may ignore this box.

@dhawal55