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VAer
Level 4

Section 1256 Contracts on 1099-B vs. TurboTax Website Input Form

If I have numbers on form 1099B line 9 and line 10, should I just ignore the numbers? 

 

All I need is to enter form 1099B line 11 number to TurboTax website (not desktop software) input form line 11, correct?

 

Is there a way to get input form for entering all numbers on form 1099B line 8-11?

 

Turbo Section 1256 Entry.jpg

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1 Reply
DaveF1006
Expert Alumni

Section 1256 Contracts on 1099-B vs. TurboTax Website Input Form

It depends. Unrealized profits and losses on straddles are generally not reported on your tax return until they are realized. However, there are specific rules for certain types of investments, such as Section 1256 contracts, which are subject to mark-to-market rules. These rules require you to report gains and losses as if they were sold at fair market value at the end of the tax year, even if they are unrealized.

 

Unless you do have mark-to-market gains and losses on straddles, you may ignore lines 9-10.

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