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Form 6781 not generating in partnership return

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Level 1
last updated ‎June 17, 2020 9:38 AM

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?

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Level 15
last updated ‎June 17, 2020 9:38 AM

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.

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Still an AllStar
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Level 15
last updated ‎June 17, 2020 9:38 AM

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.

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Still an AllStar
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Level 1
last updated ‎June 17, 2020 9:38 AM

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.

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Level 14
last updated ‎June 17, 2020 9:38 AM

Yes and Yes


ex-AllStar