Section 1256 Contracts and Straddles in K-1 schedule, code 11 C, is considered as sold investments other than stocks or bonds

[yonghai]

I made a huge mistake for buying a stock, which has a Schedule K-1 with code 11 C (Section 1256 Contracts and Straddles), only $86 there, but TurboTax considered this as sold investments other than stocks or bonds, TurboTax is wrong, because this is just a stock.

[fanfare]

Having Form 6781 is no big deal especially for $86.

Having an amount of $86 is unlikely  to trigger an audit on any form.

Changing code from what is reported on your tax documents is probably more of an audit risk.

@yonghai 

[Mike9241]

@yonghai thousands of people invest in these partnerships so they all have this 1256 reporting. I've had such reporting for multiple years and have never had a peep from the IRS. Noone can guarantee you won't be audited but the reason is unlikely to be this.   I would say there's a higher probability of you flipping a coin into the air and having land on its edge. 

[yonghai]

Thank you both Mike and Fanfare for your response. Great information!