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Screen 6781 - Contracts and Straddles (1065)

Section 1256 Contracts Marked to Market

Use the statement dialog for the
Loss for entire year
 field to enter a description that identifies an account or contract transaction. Enter the amount of the gain or loss for the entire year without regard to any Form 1099-B adjustment that may be required.
Use the statement dialog to enter the positive or negative adjustments that may be required when the Form 1099-B that the client received includes a straddle or hedging transaction as defined in IRC section 1256(e)(2).

Gains and Losses from Straddles

Use this section to enter information regarding gains and losses from positions that are part of a straddle. You can force a different holding period as needed.
Use the statement for the
Gross sales price
 field to enter a description of the disposed property when the disposition results in a gain or loss from straddles. The application determines the short-term or long-term holding period of a position based on the dates you enter in the
Date Acq’d
 and
Date Sold
 fields. Use the
Holding Period
 field to force the application to use a different holding period. Enter the closing price or the sale price for each position closed out or sold, the cost or other basis for each position closed out or sold, and the unrecognized gain from offsetting positions as of the last business day of the tax year.
In the cost field, include nondeductible interest and carrying charges allocable to property that is part of a straddle. The unrecognized gain is determined by subtracting the cost or other basis of the offsetting position from the settlement price of that position as of the last business day of the tax year.

Unrecognized Gain from Positions Held on Last Business Day

Use the statement for the
Fair market value on last business day
 field to enter a description of each position held at the end of the tax year if the settlement price of the position at the end of the tax year exceeds the cost or other basis as adjusted.
Enter the acquisition dates of the previously described positions, the fair market value of each position as of the last business day of the tax year, and the cost or other basis as adjusted for each position you have previously described. Do not include positions that are part of an identified straddle or hedging transaction, property that is stock in trade or inventory, or property used in a trade or business that is subject to depreciation.
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