this is my first year filing after trading 1256 contracts (futures contracts), and i had net capital losses. are my losses automatically considered carryover for my 2012 filing if i enter 0 in line 6 of form 6781 and complete schedule D form 1040 as necessary? form 8949 is not necessary if only trading 1256 contracts, is that correct?
could not find proper answer on irs.gov
Straddles and 1256 contracts are automatically Mark-to-Market. You must calculate your gain or loss as though you closed the positions on December 31, 2011 and pay tax on the gain or calculate the loss. Yes, these items will flow to Schedule D.
You then "reopen" the positions on January 1, 2012 to compute the next gain or loss.