Schedule D Net Loss (Line 16) and Form 6781 Line 7

[VAer]

I simply used Turbo Tax website in 2021, and don't understand how Turbo Tax calculates the number.

In 2021 schedule D line 16 and 2021 form 6781 line 7, I have both loss (negative number).

Question: Does schedule D number include form 6781 number? I believe it is included, correct? Because form 6781 loss should be able to be carried over, and it should be included in schedule D, correct?

Thanks.

[Mike9241]

line 7, gets split 40% short-term that carries to schedule D line 4 and 60% long-term that carries to schedule D line 11. look at lines 8 and 9 of the 6781.

[AbrahamT]

That is correct. Only bear in mind that if you decide to take part of the 1256 as a carryback (Line 6) which would be deducted from that total  net loss figure from Line 7 on that 6781. Provided that you marked off Box D on that  form and followed the instruction as to how much of the loss can be carried back. And whatever remains on that Line 7 will be broken down 40%/ 60% short term, long term to be carried over to Sch D line 4 and 11 respectively.

[fanfare]

If you are asking this question, you should not be attempting any NOL carrybacks.

Do not check any boxes.

enter the amount from line 11 in the appropriate box.

TurboTax handles the rest.

@VAer