Section 1256 option trades

[Jim4AU]

For the last 2 years I've struggled to get Turbotax Business to correctly show my Section 1256 option trades in a partnership.  I'm having trouble again.  I was able to speak with someone by phone about the convoluted questioning by Turbotax.  I explained the problem and how Turbotax DOES NOT treat gains as 60% LT and 40% ST.  They said they would look into it.  Never heard from them.

I called again last year and was connected to someone who didn't really understand the issue, but assured me it would be corrected.  It has not been.

Can someone help me get in touch with someone who can address these issues?  TIA.

[Mike9241]

they have to be entered through schedule K line 11 code C. there is no splitting on the partnership return. what happens is the amount flows to the same line and code on the k-1s.  anyone using a tax program to prepare their 1040 will see that 11c amount carried to 6781 part 1 and then split 

[Jim4AU]

First screen says

"Any contracts or straddles?" and "These include - Gain (or Loss) on Section 1256 Contracts Under Mark-to-Market Rules".  So I only enter trades here if I'm electing Mark-to-Market?  If I'm not electing MTM, do I enter them later?  

Different year, same problem.  This desperately needs programmer attention.  1256 is easy to understand and useful - why does TurboTax make this so unnecessarily difficult?

[MarilynG1]

No you can enter all your trades here. If you have other 1256 contracts besides Marked to Market, you can go back to the original entry point, check no box on the first screen, then check any that apply on the second screen and report your trades. 

From IRS Instructions for Form 6781:

"Mark-to-Market Rules

 Under these rules, each section 1256 contract held at year end is treated as if it were sold at fair market value (FMV) on the last business day of the tax year. The wash sale rules don’t apply. If your section 1256 contracts produce capital gain or loss, gains or losses on section 1256 contracts open at the end of the year, or terminated during the year, are treated as 60% long term and 40% short term, regardless of how long the contracts were held. The mark-to-market rules don’t apply if you properly and timely identified a section 1256 contract as a hedge."

@Jim4AU