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I have a situation where Im reporting section 1056 contracts-broad…

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I have a situation where...
I have a situation where I'm reporting section 1056 contracts-broad based equity options on form 6781 and sched D. Do you know what numbers I have to match with on the 1099 if any? I would appreciate any help! thanks
Submitted: 8 years ago.Category: Tax
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Answered in 17 hours by:
4/2/2010
Tax Professional: Robin D., Senior Tax Advisor 4 replied 8 years ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,221
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello and thank you for using Just Answer.

An equity option is an option to buy or sell stock.

Under the Section 1256 mark-to-market rules, you generally treat contracts and options as sold at fair market value at the end of your tax year for purposes of computing taxable gains and losses.

Your sales as shown on the 1099B (copy sent to you and the IRS) should be reflected on your Schedule D. The cost may also be shown, if not, you will need to calculate that based on your records.

It used to be that the broker only sent sales info on the 1099B now most give you all information needed to complete the Schedule D.

I hope this information is helpful,

 

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