I have not made the mark-to-market election and I have tax straddles from options trading this year. Mostly trading SPX and SPY. I am looking for a CPA, tax advisor, or anyone that is experienced in entering tax straddles into form 6781 to consult with. My questions are fairly basic, for example what information needs to go into the separate statement listing each straddle and its components in Part II. Another question is if the gains/losses in form 6781 Part II should flow to form 8949 or schedule D directly. The directions are not clear. I have contacted a number of CPAs and so far I have not found anyone knowledgable on form 6781. Thanks for any help you can provide.
The directions are not very clear, I agree. You can just Google it too, as its actually quite easy, and you'll find some info on it. In the end I just put three different brokerages (or combine) and put one number for gain/loss. I think something has to be checked, that's about it I believe. I use HR Block for like $40 or whatever and just manually throw in a few numbers for that form.
Thanks. That makes sense for the form itself. But what about the separate statement listing each straddle and its components in Part II that it asks you to attach, do attach a separate statement? What info do you include?
very simple on form 6781 on section 1256 contracts. you simply fill out federal supporting statement, attached broker's section 1256 contracts p&l, the numbers should match, then you are done. any tax software can do that. if you want to really understand it, then have a proper cpa is not a bad idea.
While not technically correct I would use the 1099 as presented and ignore the straddle rule. I spoke to green about it several years ago and even he said it was a pita.
Oh wow. I had a lot of them this year and wanted to make sure I do things correctly. I'll follow up with green about my situation. Maybe that's why I can't find anyone, everyone just uses the 1099 as is.