I need help with my section 1256 contracts losses this year 2024, I have in excess of $80,000 losses will be shown on form 6781. As per IRS rule I can carryback some of this amount to 3 previous years like 2021, 2022 & 2023. I am trying to calculate how much I can carry back to these previous years, need your help in exactly calculating this number.
Here is the info from tax form from previous years:
2021: $5593 gains are reported on line 16 of Schedule-D. There was no gains/losses reported on form 6781 for section 1256 contracts.
2022: -$2249 losses are reported on line 16 of Schedule-D. There was no gains/losses reported on form 6781 for section 1256 contracts.
2023: $3056 gains are reported on line 16 of Schedule-D. There was $7574 gains reported on form 6781 for section 1256 contracts.
Can someone calculate and tell me how much I can carry back, I am confused with year 2021? I am sure I can not carryback any amount to 2022 and I can carryback $3056 for year 2023.
Unfortunately, because you do not have any 1256 gains in the carryback years, you will not be able to utilize them.
The amount you can carry back to any prior year is limited to the smaller of the gain, if any, that you would report on line 16 of Schedule D (Form 1040) for that carryback year if only gains and losses from section 1256 contracts were taken into account; or the gain, if any, reported on line 16 of Schedule D (Form 1040) for that carryback year.