Section 1256 & Form 6781
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Looney1966
Returning Member

Section 1256 & Form 6781

I have a question on how to enter Options that are subject to Section 1256 reporting on form 6781.  I cannot get my statement to import so I am trying to enter my self. I have included the Schwab statement I received, but unsure how to answer the questions in TT. 

Do these show up in Part I, Part II or Part III of 6781?

Do I take the loss in 2020?

I am unsure of what I have to do to get these to show up correct on my return.  When I do enter them they show under  Part 1 but I have nothing marked at the top of the 6781(mixed straddle, net 1256, mixed straddle account or straddle by straddle) and then the loss carries to Schedule D - Is that correct? How do I know what they are?1.jpeg

4 Replies
martinmarks1919
Level 8

Section 1256 & Form 6781

Hard to read that screenshot but your entries should end up on SCH D.

Looney1966
Returning Member

Section 1256 & Form 6781

But based on that form it is sayin 6781? Gains and Losses from Section 1256 Contracts and Straddles?  Which do I pick on the top of that form? Mixed Straddles Election, Mixed Straddle Account, Net 1256 Contract Losses or Straddle by Straddle?

DaveF1006
Employee Tax Expert

Section 1256 & Form 6781

You need to know what types of 1256 contracts you have in order to pick the right elections. Usually these are enclosed in a disclosure statement but you may need to contact the broker for more specific information.  

Please review this Turbo Tax  link for more information about straddle elections. 

[Edited 02-24-2021|04:24 PM PST]

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fanfare
Level 15

Section 1256 & Form 6781

unless you have made specific elections (which you would know) do not check any of the box options.

enter the total gain or loss shown on Line 11.

That is all.

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