Form 6781 - Section 1256 Contracts and Straddles (1099B) (2024)

4 Years Ago

Fed Returns Generally

Where can I report gains and losses on Form 6781 - Section 1256 Contracts and Straddles in Drake Tax?

Screen6781 Commodity Futures and Straddles is available in most return types:

Some elections are not available where disallowed by IRS instructions.When Election C, Mixed straddle account election, is chosen, aSCH - Unformatted Attachmentwith statement number 688is required.

Form 1099-B

When Form 1099-B contains amounts in boxes 8 - 11, the statement is from aRegulated Futures Contracts ​Broker, Foreign Currency ContractsBroker, or Section 1256 Option Contracts Broker.

Gains (or Losses) from these transaction types are reported onForm 6781based on the contract type. For ease of navigation, screen8949contains a link to screen6781.

Business Returns

A taxpayer cannot make a Net section 1256 contracts loss election (box D) on Form 6781 in a 1065, 1120, 1120S, or 1041 return. Consequently, Drake Tax does not offer that election on screen 6781 in business returns. The other elections for form 6781 (boxes A, B, and C) are available on screen 6781 in business returns.

The instructions on Form 6781, page 2, specify that corporations, partnerships, estates and trusts are not eligible to make this election.

For more information about enteringGains and Losses From Section 1256Contracts and Straddles, see Form 6781 Instructions, or Publication 550.

Drake Tax does not support the creation ofForm 1045 fora Section 1256 Losscarryback. A fillable Form 1045 is available from IRS, if needed.

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