Form 6781 2023

Gains and Losses From Section 1256 

Contracts and Straddles 

Department of the Treasury 

Internal Revenue Service 

Attach to your tax return. 

Go to www.irs.gov/Form6781 for the latest information.

OMB No. 1545-0644 

Attachment 

Sequence No. 82

Name(s) shown on tax return Identifying number 

Check all applicable boxes. 

See instructions. 

A Mixed straddle election 

B Straddle-by-straddle identification election 

C Mixed straddle account election 

D Net section 1256 contracts loss election 

Part I Section 1256 Contracts Marked to Market 

(a) Identification of account (b) (Loss) (c) Gain 

1 

2 Add the amounts on line 1 in columns (b) and (c) . . . . . . 2 ( )

3 Net gain or (loss). Combine line 2, columns (b) and (c) . . . . . . . . . . . . . . . . 3 

4 Form 1099-B adjustments. See instructions and attach statement . . . . . . . . . . . . 4 

5 Combine lines 3 and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . 5 

Note: If line 5 shows a net gain, skip line 6 and enter the gain on line 7. Partnerships and S corporations, 

see instructions.

6 If you have a net section 1256 contracts loss and checked box D above, enter the amount of loss to 

be carried back. Enter the loss as a positive number. If you didn’t check box D, enter -0- . . . . 6 

7 Combine lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . 7 

8 Short-term capital gain or (loss). Multiply line 7 by 40% (0.40). Enter here and include on line 4 of

Schedule D or on Form 8949. See instructions . . . . . . . . . . . . . . . . . . . 8 

9 Long-term capital gain or (loss). Multiply line 7 by 60% (0.60). Enter here and include on line 11 of

Schedule D or on Form 8949. See instructions . . . . . . . . . . . . . . . . . . 9 

Part II Gains and Losses From Straddles. Attach a separate statement listing each straddle and its components. 

Section A—Losses From Straddles 

(a) Description of property (b) Date 

entered into 

or acquired 

(c) Date 

closed out 

or sold 

(d) Gross 

sales price 

(e) Cost or

other basis

plus expense 

of sale 

(f) Loss. 

If column (e) is 

more than (d), 

enter difference. 

Otherwise, 

enter -0-.

(g) 

Unrecognized 

gain on 

offsetting 

positions 

(h) Recognized loss.

If column (f) is 

more than (g), 

enter difference. 

Otherwise, enter -0-. 

10 

11 a Enter the short-term portion of losses from line 10, column (h), here and include on line 4 of Schedule

D or on Form 8949. See instructions . . . . . . . . . . . . . . . . . . . . . . 11a ( )

b Enter the long-term portion of losses from line 10, column (h), here and include on line 11 of Schedule

D or on Form 8949. See instructions . . . . . . . . . . . . . . . . . . . . . . 11b ( )

Section B—Gains From Straddles 

(a) Description of property (b) Date 

entered into 

or acquired 

(c) Date 

closed out 

or sold 

(d) Gross 

sales price

(e) Cost or 

other basis 

plus expense 

of sale

(f) Gain.

If column (d) is 

more than (e), 

enter difference. 

Otherwise, enter -0-.

12 

13 a Enter the short-term portion of gains from line 12, column (f), here and include on line 4 of Schedule D 

or on Form 8949. See instructions . . . . . . . . . . . . . . . . . . . . . . . 13a 

b Enter the long-term portion of gains from line 12, column (f), here and include on line 11 of Schedule

D or on Form 8949. See instructions . . . . . . . . . . . . . . . . . . . . . . 13b 

Part III Unrecognized Gains From Positions Held on Last Day of Tax Year. Memo entry only (see instructions) 

(a) Description of property (b) Date 

acquired 

(c) Fair market 

value on last

business day 

of tax year 

(d) Cost or 

other basis 

as adjusted

(e) Unrecognized 

gain. If column (c) 

is more than (d), 

enter difference.

Otherwise, enter -0-. 

14 

For Paperwork Reduction Act Notice, see instructions. Cat. No. 13715G Form 6781 (2023)
Form 6781 (2023) Page 2 

Section references are to the Internal 

Revenue Code unless otherwise noted. 

Future Developments

For the latest information about 

developments related to Form 6781 and 

its instructions, such as legislation 

enacted after they were published, go to 

www.irs.gov/Form6781.

Reminder

Qualified Opportunity Investment

If you held a qualified investment in a 

qualified opportunity fund (QOF) at any 

time during the year, you must file your 

return with Form 8997. See the 

Instructions for Form 8997.

General Instructions 

Purpose of Form 

Use Form 6781 to report: 

• Any capital gain or loss on section 

1256 contracts under the mark-tomarket rules, and 

• Gains and losses under section 1092 

from straddle positions. 

For details on section 1256 contracts 

and straddles, see Pub. 550, Investment 

Income and Expenses. 

Section 1256 Contract 

A section 1256 contract is any: 

• Regulated futures contract, 

• Foreign currency contract, 

• Nonequity option, 

• Dealer equity option, or 

• Dealer securities futures contract. 

For definitions of these terms and 

more details, see section 1256(g) and 

Pub. 550. 

A section 1256 contract doesn’t 

include any securities future contract, 

option on a securities future contract, 

interest rate swap, currency swap, basis 

swap, commodity swap, equity swap, 

equity index swap, credit default swap, 

interest rate cap, interest rate floor, or 

similar agreement.

Special rules apply to certain foreign 

currency contracts. See section 988 and 

Regulations sections 1.988-1(a)(7) and 

1.988-3. If an election is made under 

section 988(a)(1)(B) or 988(c)(1)(D), attach 

to your return a list of the contracts 

covered by the election(s). On the 

attachment, show the net gain or loss 

reported from those contracts and 

identify where the gain or loss is 

reported on the return. If an election is 

made under section 988(a)(1)(B), report 

on Form 6781 the gains and losses from 

section 1256 contracts that are also 

section 988 transactions. 

Options and commodities dealers 

must take any gain or loss from the 

trading of section 1256 contracts into

account in figuring net earnings subject 

to self-employment tax. See section 

1402(i).

Mark-to-Market Rules 

Under these rules, each section 1256 

contract held at year end is treated as if 

it were sold at fair market value (FMV) on 

the last business day of the tax year. The 

wash sale rules don’t apply. 

If your section 1256 contracts produce 

capital gain or loss, gains or losses on 

section 1256 contracts open at the end 

of the year, or terminated during the 

year, are treated as 60% long term and 

40% short term, regardless of how long 

the contracts were held. 

The mark-to-market rules don’t apply 

if you properly and timely identified a 

section 1256 contract as a hedge.

Straddle 

A straddle means offsetting positions 

with respect to personal property of a 

type that is actively traded. 

Offsetting Positions

If there is a substantial decrease in risk 

of loss to a taxpayer holding a position 

because that taxpayer or a related party 

also holds one or more other positions, 

then those positions are offsetting and 

may be part of a straddle. However, if an 

identified straddle is properly 

established, other positions held by the 

taxpayer won’t be treated as offsetting 

with respect to any position that is part 

of the identified straddle. 

General Rule for Straddles

If you don’t make any of the elections 

described in box A, B, or C, and you 

have a loss on the section 1256 contract 

component, use Part II to reduce the 

loss by any unrecognized gain on the 

non-section 1256 contract component 

before making an entry in Part I. You 

must also reduce the loss from any 

section 1256 contract component of a

straddle that would be a mixed straddle

if the positions had been properly

identified as such. 

Box A. Mixed Straddle Election 

Under section 1256(d), you can elect to 

have the mark-to-market rules not apply 

to section 1256 contracts that are part of 

a mixed straddle. A mixed straddle is 

any straddle in which at least one but not 

all of the positions is a section 1256 

contract. On the day the first section 

1256 contract forming part of the 

straddle is acquired, each position 

forming part of the straddle must be 

clearly identified as being part of such 

straddle. If you make this election, it will 

apply for all later years and you can’t 

revoke it without IRS consent. If you are 

making or have previously made this 

election, check box A and report the 

section 1256 contract component in 

Part II instead of in Part I. 

Box B. Straddle-by-Straddle 

Identification Election 

Make this election for mixed straddles 

according to Temporary Regulations 

section 1.1092(b)-3T(d) by clearly 

identifying each position by the earlier of 

(a) the close of the day the identified 

mixed straddle is established, or (b) the 

time the position is disposed of. No 

straddle-by-straddle identification 

election may be made for any straddle 

for which a mixed straddle election was 

made or if one or more positions are 

includible in a mixed straddle account. If 

you are making or have previously made 

this election, check box B.

If you make this election, any positions 

you held on the day before the election 

are deemed sold for their FMV at the 

close of the last business day before the 

day of the election. For elections made 

on or before August 18, 2014, take this 

gain or loss into account when 

computing taxable income for the year in 

which the election was made. For 

elections made after August 18, 2014, 

take this gain or loss into account in the 

year you would have reported the gain or 

loss if the identified mixed straddle had 

not been established. In addition, when 

the gain or loss that accrued prior to the 

time the identified mixed straddle was 

established is taken into account, it will 

have the same character it would have 

had if the identified mixed straddle had 

not been established. See Regulations 

section 1.1092(b)-6 for details.

Each year you hold positions subject 

to this election, you must mark to market 

your section 1256 contracts and 

determine, in accordance with 

Regulations sections 1.1092(b)-3T and 

1.1092(b)-6, whether you have a net gain 

or loss. If the net gain or loss is 

attributable to a net non-section 1256 

position, then the net gain or loss is 

treated as a short-term capital gain or 

loss. Enter it directly on Form 8949 and 

identify the election. If the net gain or 

loss is attributable to a section 1256 

position, enter the gain or loss on Form 

6781, Part I, and identify the election.

Box C. Mixed Straddle Account 

Election 

Make this election according to 

Temporary Regulations section 

1.1092(b)-4T(f) to establish one or more 

mixed straddle accounts for 2024 by the 

due date (without extensions) of your 

2023 tax return. To make this election, 

check box C and attach to your return 

(or your request for an extension of time 

to file) the statement required by the 

regulations. Report the annual account 

net gain or loss from a mixed straddle 

account in Part II and identify the 

election. See Temporary Regulations 

section 1.1092(b)-4T(c)(4) for limits on 

the total annual account net gain or loss. 
Form 6781 (2023) Page 3 

Box D. Net Section 1256 Contracts 

Loss Election 

If you have a net section 1256 contracts 

loss for 2023, you can elect to carry it 

back 3 years. Corporations, 

partnerships, estates, and trusts are not 

eligible to make this election. Your net 

section 1256 contracts loss is the 

smaller of: 

• The excess of your losses from 

section 1256 contracts over the total of 

(a) your gains from section 1256 

contracts plus (b) $3,000 ($1,500 if 

married filing separately), or 

• The total you would figure as your 

short-term and long-term capital loss 

carryovers to 2024 if line 6 of Form 6781 

were zero. Use a separate Schedule D 

(Form 1040) and Capital Loss Carryover 

Worksheet (in Pub. 550) to figure this 

amount. 

The amount you can carry back to any 

prior year is limited to the smaller of: 

• The gain, if any, that you would report 

on line 16 of Schedule D (Form 1040) for 

that carryback year if only gains and 

losses from section 1256 contracts were 

taken into account; or 

• The gain, if any, reported on line 16 of 

Schedule D (Form 1040) for that 

carryback year. 

The amounts just described are 

figured prior to any carryback from the 

loss year. Also, the carryback is allowed 

only to the extent it doesn’t increase or 

produce a net operating loss for the 

carryback year. The loss is carried to the 

earliest year first. 

Make the election by checking box D 

and entering the amount to be carried 

back on line 6. To carry your loss back, 

file Form 1045, Application for Tentative 

Refund, or an amended return. Attach an 

amended Form 6781 and an amended 

Schedule D (Form 1040) for the 

applicable years. 

On the amended Forms 6781 for the 

years to which the loss is carried back, 

report the carryback on line 1 of that 

year’s amended Form 6781. Enter “Net 

section 1256 contracts loss carried back 

from” and the tax year in column (a), and 

enter the amount of the loss carried 

back in column (b). 

Specific Instructions 

Part I 

Line 1 

Include on line 1 all capital gains and 

losses from section 1256 contracts open 

at the end of your tax year or closed out 

during the year. If you received a Form 

1099-B, Proceeds From Broker and 

Barter Exchange Transactions, or 

substitute statement, include on line 1 

the amount from box 11 of each form. In 

column (a), enter “Form 1099-B” and the 

broker’s name. List separately each 

transaction for which you didn’t receive 

a Form 1099-B or substitute statement, 

or received a Form 1099-B that isn’t for 

your tax year. 

If you are completing an amended 

2023 Form 6781 to carry back a net 

section 1256 contracts loss from 2024 or 

a later year, report the carryback on line 

1. Enter “Net section 1256 contracts loss 

carried back from” and the tax year in 

column (a), and enter the amount of the 

loss carried back to 2023 in column (b). 

See the instructions for box D for details. 

Line 4 

▲!

CAUTION

For information about how to 

elect to defer capital gain net 

income because you invested 

in a QOF, see the Instructions 

for Form 8949. Don’t use line 4 to show 

the adjustment for a QOF-related 

deferral.

If the Form 1099-B you received includes 

a straddle or hedging transaction (as 

defined in section 1256(e)(2)), you may 

need to make certain adjustments, listed 

next. Attach a statement listing each of 

these adjustments and enter the total(s) 

on line 4. 

• The section 1256 contract part of a 

mixed straddle, if you made any of the 

mixed straddle elections. 

• The amount of the loss, if you didn’t 

make any of the mixed straddle elections 

or the straddle wasn’t identified as a 

mixed straddle and you had a loss on 

the section 1256 contract part that was 

less than the unrecognized gain on the 

non-section 1256 contract part. If the 

unrecognized gain is less than the loss, 

enter the unrecognized gain. Use Part I 

for a loss on the disposition of one or 

more positions that are part of a mixed 

straddle and that are non-section 1256 

positions if no disposition of a nonsection 1256 position in the straddle 

would be a long-term capital gain or loss 

and the disposition of one or more 

section 1256 positions in the straddle 

would be a capital gain or loss. 

• The section 1256 contract part of a 

hedging transaction. The gain or loss on a 

hedging transaction is treated as ordinary 

income or loss. See Pub. 550 for details. 

Line 5 

Partnerships enter the amount from line 

5 on Form 1065, Schedule K, line 11. 

S corporations enter the amount from 

line 5 on Form 1120-S, Schedule K, line 

10. Lines 6 through 9 on Form 6781, 

Part I, don’t apply to partnerships or S 

corporations and are left blank. 

Line 6 

See the instructions for box D. 

Line 8 

If you are not deferring any of this 

amount due to an investment in a QOF,

include this amount on Schedule D 

(Form 1040), line 4; or on Schedule D 

(Form 1041), line 4. If you are deferring 

any of this amount due to an investment 

in a QOF, follow the instructions in the 

next paragraph.

For other returns, enter it in Part I of a 

Form 8949 with box B checked (if you 

received a Form 1099-B or substitute 

statement for every transaction included 

on line 1) or box C checked (if you can’t 

check box B). Enter “Form 6781, Part I” 

on line 1 in column (a). Enter the gain or 

(loss) in column (h). Leave all other 

columns blank.

Line 9 

If you are not deferring any of this 

amount due to an investment in a QOF, 

include this amount on Schedule D 

(Form 1040), line 11; or on Schedule D 

(Form 1041), line 11. If you are deferring 

any of this amount due to an investment 

in a QOF, follow the instructions in the 

next paragraph.

For other returns, enter it in Part II of a 

Form 8949 with box E checked (if you 

received a Form 1099-B or substitute 

statement for every transaction included 

on line 1) or box F checked (if you can’t 

check box E). Enter “Form 6781, Part I” 

on line 1 in column (a). Enter the gain or 

(loss) in column (h). Leave all other 

columns blank.

▲!

CAUTION

If you held a qualified 

investment in a QOF at any 

time during the year, you must 

file your return with Form 

8997. See the Instructions for Form 8997 

for more information.

Part II 

Use Section A for losses from positions 

that are part of a straddle. Generally, a 

loss is allowed to the extent it exceeds 

the unrecognized gain on offsetting 

positions. The part of the loss not 

allowed is treated as if incurred in the 

following year and is allowed to the 

same extent. However, a loss from a 

position established in an identified 

straddle after October 21, 2004, isn’t 

allowed. Instead, the basis of each 

offsetting position in the identified 

straddle that has unrecognized gain is 

increased by the amount of the 

unallowed loss multiplied by the 

following fraction: 

The unrecognized gain (if any) 

on the offsetting position 

The total unrecognized gain on 

all positions that offset the loss 

position in the identified straddle

For more details, see chapter 4 of 

Pub. 550. 

Use Section B for gains from positions 

that are part of a straddle. 
Form 6781 (2023) Page 4 

Don’t include in Part II a disposition of 

any of the following. 

• A position that is part of a hedging 

transaction. 

• A loss position included in an identified 

straddle established before October 22, 

2004, unless you disposed of all of the 

positions making up the straddle. 

• A loss position included in an identified 

straddle established after October 21, 

2004. 

• A position that is part of a straddle if all 

of the positions of the straddle are 

section 1256 contracts. 

Line 10, Column (a) 

Enter the property and delivery date and 

indicate whether the property is a long or 

short position. 

Line 10, Column (d) 

For positions closed out or sold, enter 

the closing price or sales price. 

Line 10, Column (e) 

For positions closed out or sold, enter 

the cost or other basis plus commissions 

paid. Include nondeductible interest and 

carrying charges allocable to personal 

property that is part of a straddle. If any 

part of an unallowed loss from an 

offsetting position established in an 

identified straddle after October 21, 

2004, increased your basis in the 

position, also include that amount. See 

Pub. 550 for details. 

Line 10, Column (f) 

Include in this column any loss not 

allowed in the prior year to the extent of 

the unrecognized gain. 

Line 10, Column (g) 

Enter the unrecognized gain on positions 

offsetting those in columns (a) through 

(f). Include unrecognized gain on any 

position you are treated as holding 

because it is held by a related party. 

Figure the amount to enter in this column 

by subtracting the cost or other basis of 

the offsetting position from the 

settlement price of that position as of the 

close of the last business day of your 

2023 tax year. 

Lines 11 and 13 

Separate recognized gains and losses 

into short term and long term. Attach a 

separate statement for each. For 

information about holding periods for 

straddle positions, see Pub. 550 and 

Temporary Regulations section 

1.1092(b)-2T.

Attach separate statements for (a) 

section 988 contracts that are part of a 

mixed straddle, and (b) any gain on the 

disposition or other termination of any 

position held as part of a conversion 

transaction (as defined in section 

1258(c)). Identify the net gain or loss and 

report it on Form 4797, line 10. 

Line 11a 

Include this amount on Schedule D 

(Form 1040), line 4; or on Schedule D 

(Form 1041), line 4.

For other returns, enter it in Part I of a 

Form 8949 with box C checked. Enter 

“Form 6781, Part II” on line 1 in column 

(a). Enter the (loss) as a negative number 

(in parentheses) in column (h). Leave all 

other columns blank.

Line 11b 

Include this amount on Schedule D 

(Form 1040), line 11; or on Schedule D 

(Form 1041), line 11.

For other returns, enter it in Part II of a 

Form 8949 with box F checked. Enter 

“Form 6781, Part II” on line 1 in column 

(a). Enter the (loss) as a negative number 

(in parentheses) in column (h). Leave all 

other columns blank.

Line 13a 

If you are not deferring any of this 

amount due to an investment in a QOF, 

include this amount on Schedule D 

(Form 1040), line 4; or on Schedule D 

(Form 1041), line 4. If you are deferring 

any of this amount due to an investment 

in a QOF, follow the instructions in the 

next paragraph.

For other returns, enter it in Part I of a 

Form 8949 with box C checked. Enter 

“Form 6781, Part II” on line 1 in column 

(a). Enter the gain in column (h). Leave all 

other columns blank.

Line 13b 

If you are not deferring any of this amount 

due to an investment in a QOF, include 

this amount on Schedule D (Form 1040), 

line 11; or on Schedule D (Form 1041), line 

11. If you are deferring any of this amount 

due to an investment in a QOF, follow the 

instructions in the next paragraph.

For other returns, enter it in Part II of a 

Form 8949 with box F checked. Enter 

“Form 6781, Part II” on line 1 in column 

(a). Enter the gain in column (h). Leave all 

other columns blank.

Collectibles gain or (loss). A collectibles 

gain or (loss) is any long-term gain or 

deductible long-term loss from the sale 

or exchange of a collectible that is a 

capital asset. Collectibles include works 

of art, rugs, antiques, metals (such as 

gold, silver, and platinum bullion), gems, 

stamps, coins, alcoholic beverages, and 

certain other tangible property. 

If any of the gain or loss you reported 

in Part II is a collectibles gain or (loss) 

and you are filing Form 1040, 1040-SR, 

or 1041, follow the instructions below for 

the form you file. 

Form 1040 or 1040-SR. If you 

checked “Yes” on line 17 of Schedule D 

(Form 1040), include the collectibles gain 

or (loss) from Part II on line 3 of the 28% 

Rate Gain Worksheet in the Instructions 

for Schedule D (Form 1040).

Form 1041. If you must complete the 

28% Rate Gain Worksheet in the 

Instructions for Schedule D (Form 1041), 

include the collectibles gain or (loss)

from Part II on line 3 of that worksheet. 

Part III 

Complete Part III by listing each position 

(whether or not part of a straddle) that 

you held at the end of the tax year 

(including any position you are treated as 

holding because it is held by a related 

party) if the FMV of the position at such 

time exceeds your cost or other basis as 

adjusted. 

Don’t include positions that are part of 

an identified straddle or hedging 

transaction, property that is stock in 

trade or inventory, or property subject to 

depreciation used in a trade or business. 

Don’t complete Part III if you don’t 

have a recognized loss on any position 

(including section 1256 contracts). 

Paperwork Reduction Act Notice. We 

ask for the information on this form to 

carry out the Internal Revenue laws of

the United States. You are required to

give us the information. We need it to

ensure that you are complying with these 

laws and to allow us to figure and collect 

the right amount of tax. 

You are not required to provide the 

information requested on a form that is 

subject to the Paperwork Reduction Act 

unless the form displays a valid OMB 

control number. Books or records 

relating to a form or its instructions must 

be retained as long as their contents 

may become material in the 

administration of any Internal Revenue 

law. Generally, tax returns and return 

information are confidential, as required 

by section 6103. 

The time needed to complete and file 

this form and related schedules will vary 

depending on individual circumstances. 

The estimated burden for individual and 

business taxpayers filing this form is 

approved under OMB control numbers 

1545-0074 and 1545-0123, respectively, 

and is included in the estimates shown in 

the instructions for their individual and 

business income tax return. The 

estimated burden for all other taxpayers 

who file this form is shown below.

Recordkeeping . . . . 8 hr., 36 min.

Learning about the 

law or the form . . . . 1 hr., 57 min.

Preparing the form . . 3 hr., 7 min.

Copying, assembling, 

and sending the form 

to the IRS . . . . . . . . 16 min.

If you have comments concerning the 

accuracy of these time estimates or 

suggestions for making this form 

simpler, we would be happy to hear from 

you. See the instructions for the tax 

return with which this form is filed.