This article will help you enter contract transactions from Form 1099-B, boxes 8 through 11, and generate Form 6781, Gains and Losses from Section 1256 Contracts and Straddles in Lacerte. Select your module below for instructions.
Individual
- Go to Screen 17, Dispositions.
- In the Sections list, select Dispositions (Schedule D, 4797, etc.).
- Enter the Description of property.
- In the Sections list, select Contracts and Straddles (6781).
- Enter the field 1 = 1256 contracts, 2 = straddles, 3 = memo only (triggers 6781).
- Enter 1 to print the transaction in Part I of Form 6781.
- Enter a 2 to print the transaction in Part II of Form 6781.
- Enter a 3 to print the transaction in Part III of Form 6781.
- Enter the Section 1256 contracts gain (loss).
- This amount is reported on Form 1099-B, box 11.
- Enter any Unrecognized gain on offsetting position (straddles).
- Enter the FMV at end of year (-1=none) (Part III memo only).
- Click Add and repeat steps 3-8 to input additional contracts or straddles.
Partnership
- Go to Screen 19, Dispositions.
- In the Sections list, select Schedule D, 4797.
- Enter the Description of property.
- In the Sections list, select Contracts and Straddles.
- Enter the field 1 = 1256 contracts, 2 = straddles, 3 = memo only (triggers 6781).
- Enter 1 to print the transaction in Part I of Form 6781.
- Enter a 2 to print the transaction in Part II of Form 6781.
- Enter a 3 to print the transaction in Part III of Form 6781.
- Enter the Section 1256 contracts gain (loss).
- This amount is reported on Form 1099-B, box 11.
- Enter any Unrecognized gain on offsetting pos. (straddles).
- Enter the Fair market value at end of year (-1=none) (Part III memo only).
- Click Add and repeat steps 3-8 to input additional contracts or straddles.
Corporate
- Go to Screen 15, Dispositions (Sch. D/4797/etc.).
- In the Sections list, select Dispositions (Schedule D, 4797, etc.).
- Enter the Description of property.
- In the Sections list, select Contracts and Straddles.
- Enter the field 1 = 1256 contracts, 2 = straddles, 3 = memo only (triggers 6781).
- Enter 1 to print the transaction in Part I of Form 6781.
- Enter a 2 to print the transaction in Part II of Form 6781.
- Enter a 3 to print the transaction in Part III of Form 6781.
- Enter the Section 1256 contracts gain (loss).
- This amount is reported on Form 1099-B, box 11.
- Enter any Unrecognized gain on offsetting position (straddles).
- Enter the FMV at end of year (-1=none) (Part III memo only).
- Click Add and repeat steps 3-8 to input additional contracts or straddles.
S-Corporate
- Go to Screen 23, Dispositions (D, 4797, etc.).
- In the Sections list, select Dispositions (Schedule D, 4797, etc.).
- Enter the Description of property.
- In the Sections list, select Contracts and Straddles.
- Enter the field 1 = 1256 contracts, 2 = straddles, 3 = memo only (triggers 6781).
- Enter 1 to print the transaction in Part I of Form 6781.
- Enter a 2 to print the transaction in Part II of Form 6781.
- Enter a 3 to print the transaction in Part III of Form 6781.
- Enter the Section 1256 contracts gain (loss).
- This amount is reported on Form 1099-B, box 11.
- Enter any Unrecognized gain on offsetting pos. (straddles).
- Enter the FMV at end of year (-1=none) (Part III memo only).
- Click Add and repeat steps 3-8 to input additional contracts or straddles.
Fiduciary
- Go to Screen 22, Dispositions.
- In the Sections list, select Dispositions (Schedule D, 4797, etc.).
- Enter the Description of property.
- In the Sections list, select Contracts and Straddles (6781).
- Enter the field 1 = 1256 contracts, 2 = straddles, 3 = memo only (triggers 6781).
- Enter 1 to print the transaction in Part I of Form 6781.
- Enter a 2 to print the transaction in Part II of Form 6781.
- Enter a 3 to print the transaction in Part III of Form 6781.
- Enter the Section 1256 contracts gain (loss).
- This amount is reported on Form 1099-B, box 11.
- Enter any Unrecognized gain on offsetting pos. (straddles).
- Enter the FMV at EOY (-1=none) (Part III memo only).
- Click Add and repeat steps 3-8 to input additional contracts or straddles.
To find input fields relating to mixed straddle elections, carrybacks, and Form 1099-B adjustments, click Carryovers/Misc in the Disposition list and choose Contracts and Straddles (6781) from the Sections list.
