Screen 6781 - Contracts and Straddles (1040)

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Overview

To enter Form 6781 on a per Broker statement basis, enter data in the Broker screen. Data in that screen combines with data in the B&D and 6781 screens and reports on the applicable schedule/form. Enter data on one screen only; do not enter the same data on multiple screens.

Form 6781 - General Information

Subject to self-employment tax code

If section 1256 gains/losses are subject to self-employment tax, select the applicable code. These gains/losses transfer automatically to the Net Operating Loss Worksheet as a business capital gain or loss. If they are not subject to self-employment tax, they are considered a nonbusiness capital gain or loss.

Mixed straddle account election

When you mark the Mixed straddle election field, use this statement to enter information required by the regulations.

Gains and Losses from Section 1256 Contracts and Straddles

Use this section to enter information regarding gains or losses from section 1256 contracts open at the end of the tax year or closed out during the tax year; losses and gains from positions that are part of a straddle; and unrecognized gain from positions held on the last business day.

Section 1256 contracts marked to market (Form 6781, Part I)

Use this statement to enter information for section 1256 contracts marked to market. In the B&D screen, enter net gains or losses attributable to a net non-section 1256 position in the Schedule for detail statement. Be sure to identify the election in the description column.

Gains and losses from straddles (Form 6781, Part II)

Use this statement to enter gains and losses from straddles information.

Unrecognized gains from positions held on last day of tax year (Form 6781, Part III)

If the fair market value of the position at the end of the tax year exceeds the cost or other basis as adjusted, use this statement to describe each position held at the end of the tax year.


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