Broad based index option tax question

Discussion in 'Options' started by thehixx, Apr 4, 2007.

  1. thehixx


    In 2006, I traded RUT options for the first time (at IB) . As broad based index options, it is my understanding that these trades are NOT to be reported on Schedule D directly. Instead, IB should fill out boxes 8,9,10 and 11 on my 1099-B which summarizes my marked-to-market profits in 1256 transactions. I will then fill out IRS form 6781 and then in the end, form 6781 will guide me to place the appropriate short and long-term gain amounts onto Schedule D of my taxes.

    My questions:

    1. Is the above correct?
    2. IB did not fill out anything in boxes 8,9,10 or 11. It appears they are not considering these trades as 1256 contracts, as they should be. Has anyone been through this with IB before? I have a customer service tab open, but am getting canned responses.

    Here is a link that I am going by: