Fillable Form 6781 - Gains And Losses From Section 1256 Contracts And Straddles

Form 6781 (2011)

Page

Line 6

Box D. Net Section 1256

from box 13 of each form. In column (a),

write “Form 1099-B” and the broker’s

Contracts Loss Election

See the instructions for box D.

name. List separately each transaction

Line 8

for which you did not receive a Form

If you have a net section 1256 contracts

1099-B or substitute statement, or

loss for 2011, you can elect to carry it

Include this amount on Schedule D

received a Form 1099-B that is not for

back 3 years. Corporations,

(Form 1040), line 4; or on Schedule D

your tax year.

partnerships, estates, and trusts are not

(Form 1041), line 2; or, for other returns,

eligible to make this election. Your net

as a short-term capital gain or (loss) on

If you are completing an amended

section 1256 contracts loss is the

the Schedule D for your return and enter

2011 Form 6781 to carry back a net

smaller of:

“Form 6781, Part I” in column (a) of that

section 1256 contracts loss from 2012 or

• The excess of your losses from

Schedule D.

a later year, report the carryback on line

section 1256 contracts over the total of

1. Enter “Net section 1256 contracts loss

Line 9

(a) your gains from section 1256

carried back from” and the tax year in

contracts plus (b) $3,000 ($1,500 if

Include this amount on Schedule D

column (a), and enter the amount of the

married filing separately), or

(Form 1040), line 11; or on Schedule D

loss carried back to 2011 in column (b).

(Form 1041), line 7; or, for other returns,

See the instructions for box D for

• The total you would figure as your

as a long-term capital gain or (loss) on

details.

short-term and long-term capital loss

the Schedule D for your return and enter

carryovers to 2012 if line 6 of Form 6781

Line 4

“Form 6781, Part I” in column (a) of that

were zero. Use a separate Schedule D

Schedule D.

(Form 1040) and Capital Loss Carryover

If the Form 1099-B you received

Worksheet (in Pub. 550) to figure this

includes a straddle or hedging

Part II

amount.

transaction (as defined in section

Use Section A for losses from positions

1256(e)(2)), you may need to make

The amount you can carry back to any

that are part of a straddle. Generally, a

certain adjustments listed below. Attach

prior year is limited to the smaller of:

loss is allowed to the extent it exceeds

a schedule listing each of these

• The gain, if any, that you would report

the unrecognized gain on offsetting

adjustments and enter the total(s) on

on line 16 of Schedule D (Form 1040) for

positions. The part of the loss not

line 4.

that carryback year if only gains and

allowed is treated as if incurred in the

• The regulated futures part of a mixed

losses from section 1256 contracts were

following year and is allowed to the

straddle, if you made any of the mixed

taken into account, or

same extent. However, a loss from a

straddle elections.

position established in an identified

• The gain, if any, reported on line 16 of

• The amount of the loss, if you did not

straddle after October 21, 2004, is not

Schedule D (Form 1040) for that

make any of the mixed straddle

allowed. Instead, the basis of each

carryback year.

elections or the straddle was not

offsetting position in the identified

The amounts just described are

identified as a mixed straddle and you

straddle that has unrecognized gain is

figured prior to any carryback from the

had a loss on the regulated futures part

increased by the amount of the

loss year. Also, the carryback is allowed

that was less than the unrecognized gain

unallowed loss multiplied by the

only to the extent it does not increase or

on the nonregulated futures part. If the

following fraction:

produce a net operating loss for the

unrecognized gain is less than the loss,

carryback year. The loss is carried to the

The unrecognized gain (if any) on the

enter the unrecognized gain. Use Part I

earliest year first.

offsetting position

for a loss on the disposition of one or

more positions that are part of a mixed

Make the election by checking box D

The total unrecognized gain on all positions

straddle and that are non-section 1256

and entering the amount to be carried

that offset the loss position in the identified

positions if no disposition of a non-

back on line 6. To carry your loss back,

straddle.

section 1256 position in the straddle

file Form 1045, Application for Tentative

For more details, see Pub. 550,

would be a long-term capital gain or

Refund, or an amended return. Attach an

chapter 4.

loss, and the disposition of one or more

amended Form 6781 and an amended

section 1256 positions in the straddle

Use Section B for gains from positions

Schedule D (Form 1040) for the

would be a capital gain or loss.

applicable years.

that are part of a straddle.

• The regulated futures part of a hedging

Do not include in Part II a disposition

On the amended Forms 6781 for the

transaction. The gain or loss on a

of any of the following.

years to which the loss is carried back,

hedging transaction is treated as

report the carryback on line 1 of that

• A position that is part of a hedging

ordinary income or loss. See Pub. 550

year’s amended Form 6781. Enter “Net

transaction.

for details.

section 1256 contracts loss carried back

• A loss position included in an identified

from” and the tax year in column (a), and

Line 5

straddle established before October 22,

enter the amount of the loss carried

2004, unless you disposed of all of the

back in column (b).

Partnerships enter the amount from line

positions making up the straddle.

5 on Form 1065, Schedule K, line 11.

Specific Instructions

Electing large partnerships enter the

• A loss position included in an identified

amount from line 5 on Form 1065-B, Part

straddle established after October 21,

Part I

II, line 5. S corporations enter the

2004.

amount from line 5 on Form 1120S,

• A position that is part of a straddle if all

Line 1

Schedule K, line 10. Lines 6 through 9 in

of the positions of the straddle are

Part I of Form 6781 do not apply to

Include on line 1 all gains and losses

section 1256 contracts.

partnerships or S corporations and are

from section 1256 contracts open at the

left blank.

Column (a)

end of your tax year or closed out during

the year. If you received a Form 1099-B,

Enter the property and delivery date,

Proceeds From Broker and Barter

and indicate whether the property is a

Exchange Transactions, or substitute

long or short position.

statement, include on line 1 the amount

Form 6781 - Gains And Losses From Section 1256 Contracts And Straddles - 2011 Page 3

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