Form 6781 section 1256 contracts marked to market (1040)

Show expandable text

Use the information below to enter data for Section 1256 Contracts Marked to Market on Form 6781.

Note: For net non-section 1256, go to the B&D screen and complete the Schedule for detail statement. Be sure to identify the election in the description column.

  1. In the Income input folder, click the 6781 screen or the Broker screen. Only use the Broker screen if you're entering a consolidated broker statement.
  2. If you're on the Broker screen, open the Aggregate profit (loss) on contracts statement. If you're on the 6781 screen, open the Net section 1256 contracts loss election statement. 
  3. Complete these fields within the statement.
    • TSJ: Enter T, S, or J to indicate taxpayer, spouse, or joint.
    • Description: Enter a description that identifies an account or contract transaction. When Form 1099-B or similar statement has been issued, include the text "Form 1099-B" and the broker's name in this field. Identify all other transactions separately.
    • Loss/Gain Entire Yr: Enter the amount of the gain or loss for the entire year. Negative amounts report in the loss column of Form 6781, Part I. Enter the amount without regard to any Form 1099-B adjustment.
    • Explanation 1099-B Adjust / 1099-B Adjust: Use these fields to enter positive or negative adjustments that may be required when the client's Form 1099-B includes a straddle or hedging transaction as defined in section 1256(e)(2). The explanation reports in a statement that lists each adjustment, and the total of all adjustments reports on Part I of the form.
    • Tot 1256 Carryback: If you elect to carryback a section 1256 loss to a previous year, enter the amount of the loss in this field as a positive number. The total amount for the carrybacks that are entered transfers to Part I, if applicable.
    • State: Enter the state postal code for the item entered. See State fields for more information.
    • Foreign: If the contract is a foreign currency contract, select the code that corresponds to the appropriate election. UltraTax CS includes the contract on the list of foreign currency contracts submitted with the return.

Was this article helpful?

Thank you for the feedback!