Where do I enter Gains and Losses From Section 1256 Contracts and Straddles (Form 6781)?
Menu Path: Income > Uncommon Income > Contracts and Straddles
Menu Path: Income > Business / Rental Income > Partnership Income (Schedule K-1)
Menu Path: Income > Business / Rental Income > S Corporation Income (Schedule K-1)
Section 1256 contracts include regulated futures contracts, foreign currency contracts, options, dealer equity options, and dealer securities futures contracts. For tax purposes, these investments are considered "sold" at year-end (even if the positions are not actually closed) and are assigned their fair market value in order to determine gains and losses.
If you have a section 1256 contract on your K-1, you can enter it in the Business / Rental Income section of the application. Otherwise, you can enter your contracts and straddles on the Section 1256 Contracts and Straddles screen.
Menu Path: Income > Business / Rental Income > Partnership Income (Schedule K-1)
Menu Path: Income > Business / Rental Income > S Corporation Income (Schedule K-1)
Section 1256 contracts include regulated futures contracts, foreign currency contracts, options, dealer equity options, and dealer securities futures contracts. For tax purposes, these investments are considered "sold" at year-end (even if the positions are not actually closed) and are assigned their fair market value in order to determine gains and losses.
If you have a section 1256 contract on your K-1, you can enter it in the Business / Rental Income section of the application. Otherwise, you can enter your contracts and straddles on the Section 1256 Contracts and Straddles screen.
