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 Intuit ProConnect. Select your module below for instructions.
Individual
- Go to the Input Return tab.
- Select Income.
- Select Disposition (Sch D, etc.), then Schedule D/4797/etc.
- Enter any applicable information in the Quick Entry: Dispositions (Schedule D, 4794, etc.) grid.
- Select the Details button.
- Select the tab labeled 4684, 6781, 8824, 4255 and scroll to the Contracts and Straddles (6781) section.
- Make an entry in the field labeled 1=1256 contracts, 2=straddles, 3=memo only (triggers 6781).
- Enter 1 to print the transaction on Form 6781, Part I.
- Enter 2 to print the transaction on Form 6781, Part II.
- Enter 3 to print the transaction on Form 6781, Part III.
- Enter the Section 1256 contracts gain (loss).
- Enter the Unrecognized gain on offsetting positions (straddles).
- Enter the FMV at end of year.
Select Income, then Schedule D/4797/etc. (Carryovers/Misc Info) to see inputs related to mixed straddle elections, carrybacks, and Form 1099-B adjustments.
Partnership
- Go to the Input Return tab.
- From the left of the screen, select Schedule K and choose Dispositions.
- Click the blue Details button to expand the input fields.
- Locate the Dispositions (Schedule D, 4797, etc.) section.
- Enter the Description of property.
- Click the three dots at the top of the screen and select 4684, 6781, 8824.
- Scroll down to the Contracts and Straddles section.
- 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).
- Repeat steps 5-11 to input additional contracts or straddles.
Corporate
- Go to the Input Return tab.
- From the left of the screen, select Income and choose Dispositions (Sch D/4797/etc.).
- Click the blue Details button to expand the input fields.
- Locate the Dispositions (Schedule D, 4797, etc.) section.
- Enter the Description of property.
- Click the three dots at the top of the screen and select 4684, 6781, 8824, 4255.
- Scroll down to the Contracts and Straddles section.
- 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).
- Repeat steps 5-11 to input additional contracts or straddles.
S-Corporate
- Go to the Input Return tab.
- From the left of the screen, select Schedule K and choose Dispositions (D,4797,etc.).
- Click the blue Details button to expand the input fields.
- Locate the Dispositions (Schedule D, 4797, etc.) section.
- Enter the Description of property.
- Click the three dots at the top of the screen and select 4684, 6781, 8824.
- Scroll down to the Contracts and Straddles section.
- 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).
- Repeat steps 5-11 to input additional contracts or straddles.
Fiduciary
- Go to the Input Return tab.
- From the left of the screen, select Income and choose Dispositions.
- Select Schedule D/4797/etc.
- Click the blue Details button to expand the input fields.
- Locate the Dispositions (Schedule D, 4797, etc.) section.
- Enter the Description of property.
- From the top of the screen, select 4684, 6781, 8824.
- Scroll down to the Contracts and Straddles section.
- 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).
- Repeat steps 5-12 to input additional contracts or straddles.