Futures Contract Loss on 1099-B

JVPH
JVPH Member Posts: 2 Newcomer
in Filing my taxes

I have a 1099-B from brokerage, for "Proceeds from Broker & Barter Exchanges Transactions" with only two boxes with any data:

Box 8 Profit/(loss) Relaized on Futures Contracts in USD for 2023… $(****)

Box 11 Aggregate Profit of (Loss) from lines 8, 9, and 10 …. ($****)

Both Box 8 and 11 are the same amount (loss).

No other information is on or attached to this 1099-B.

Any suggestions for entering this transaction on federal return's input? Any way to enter directly to the lines 8 and 11 of a 1099-B?

Thanks for any suggestions!

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Best Answer

  • KeriC
    KeriC FreeTaxUSA Agent Posts: 109
    Answer ✓

    It sounds like your 1099-B is reporting Section 1256 contracts. Section 1256 contracts include regulated futures contracts, foreign currency contracts, options, dealer equity options, and dealer securities futures contracts. These investments are considered "sold" at year-end (even if the positions are not actually closed) for tax purposes, and are assigned their fair market value in order to determine gains and losses.

    The menu path within the software to enter this information is:
    Income > Contracts and Straddles (under the "Uncommon Income" section)

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Answers

  • JVPH
    JVPH Member Posts: 2 Newcomer

    Thank you! ANSWERED. This appears to be exactly what I needed. A Form 6781 is created, and the small loss transferred to 1040's Scedule D. (This was for the "Net section 1256 contracts loss election" option).

    — John V

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