IRS Form 6781 with a Section 1256 Carryback Claim

For a tutorial on how to complete Form 6781:    • How to Complete IRS Form 6781 - Simple Exa...  

IRS Form 6781 is used to report a taxpayer's net Section 1256 gains & losses for a tax year. If a taxpayer realizes a net Section 1256 loss for the year, the taxpayer may be able to carryback those losses to prior tax years

Losses are generally carried back three years, and can only be used to offset other Section 1256 gains for those years. The loss carryback claim can be reported on Form 1045, or the taxpayer can file amended tax returns for the carryback years.

In this example, we file a Form 1045 to carryback Section 1256 losses to two of the three preceding tax years.

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