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Futures Contract Loss on 1099-B

JVPH

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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Accepted answers

KeriC

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)

All comments

KeriC

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

JVPH

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

TaxNconfused2

I had this same issue. I had no straddles or hedging adjustments that applied. I didn't need to carry back my loss for 3 years and did not select "Net section 1256 contracts loss election."

I simply had a futures contract loss. Be sure when you enter your 1099-B Line 11 aggregated loss, to use a minus sign before the figure so that the software creates Form 6781 with the loss in the correct column. Otherwise, it will be created as a gain.