Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Form 6781 not generating in partnership return

nwempe
Level 2

I have a k-1 with an amount in Box 11 (C) Section 1256 Contracts and Straddles.  I entered the information on the Passthru K-1 tab.  Why is it not generating Form 6781?

Labels (1)
0 Cheers
4 Replies 4
itonewbie
Level 15

If you are preparing a partnership return, why would you expect F.6781 to be generated for the Line 11C item from a pass-through K-1?  The income is taxable at the shareholder level and it will then be reported on F.6781 of the shareholder's return.

---------------------------------------------------------------------------------
Still an AllStar
itonewbie
Level 15

On the other hand, if you are preparing a 1040 the amount entered on Screen 20.1, under the section for Line 11 - Other, on the line for (11C) 1256 gain (loss) will flow correctly to F.6781.

---------------------------------------------------------------------------------
Still an AllStar
nwempe
Level 2

Why is the Form 6781 available in the partnership return then?  If the Section 1256 transaction originated with the partnership?  So if it's just flowing through from another entity it just goes directly to the Schedule K-1 to flow to the shareholder then?  

 

And yes I'm preparing the partnership return.

0 Cheers
sjrcpa
Level 15

Yes and Yes


ex-AllStar