IRS Form 6781 with a Section 1256 Carryback Claim

For a tutorial on how to complete Form 6781: • How to Complete IRS Fo...
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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[@AlYouTuber-j6u]

Great video! Do you know if you need to make an election to carryback the 1256 losses on a timely filed tax return? I saw something about the mixed straddle elections needing to be done by the original due date, but can't find anything about this election

[@jaydon9925]

Another question. Does this apply to state tax as well.

[@jaydon9925]

Perfect for my situation. I hear turbo tax doesn’t support 1045. Any other option for electronically doing this. Thanks.

[@saigon5177]

Can you make a video on how to adjust prior year for carryback on turbo tax?

[@Live_on_Marz]

Hi,
Do you know of any loss carry forward limitations for 1256? Can 1256 losses be deducted from other capital gains, dividends for the same year? What about ordinary income ($3k limit)?

[@ruiw4263]

loss carryback? don't you already paid tax for prior year profit? what is the point to carryback loss?

[@joshs1709]

Because when you carryback, you get some of that tax you paid in prior years back right away. If you carry forward, you have to wait for future years, and also hope that you have 1256 profits to offset that loss. Money now vs money later, money now is better.