6781 Gains and Losses From Regulated Futures [| OME No. 1585-0688
Form Contracts and Straddles 1983
Pacartinent ofthe Treasury > Tobe filed with Form 1040, 1041, 1065, 1120, 1120S, ete. 82

Name(s) as shown on tax return Identifying number

A. 1 Check here if you made the mixed straddle election this year or an earlier year. (See instructions)
B. 1) Check here if you elect to carryback a net commodity futures loss. (See instructions) _

PART I.—Regulated Futures Contracts Marked to Market

coriaeaantion of property b.Dateentered | & Dateclosedor 4. Loss e. GAIN

1
2 Addcolumndandcolumnelinel. . 2... ..........1 )
3 > Combine columns d and e of line 2 and enter the net gain or (loss) .
4 Form 1099-B adjustments (see instructions, attach schedule). . . . . poo
5 Combinelines3and4. 6. 1 6.
6 If you have a net commodity futures loss and checked box B above, enter the amount to be carriedback (Ci
7 Subtract line 6 from line 5 . BP
8 Multiply line 7 by 40%. Enter as a short-term capital gain or (loss) on Schedule D, Part |. Identify as Form 6781,

Part | a S
9 Multiply line 7 by 60%. Enter as a long-term capital gain or (loss) on Schedule D, Part II, Identify as Form 6781,

Patton

PART II.—Gains and Losses From Straddles (Attach a separate schedule listing each straddle and its components.)

Section A.—Losses From Straddles

1 eitOSS, h. Recognized
e. Cost or column eis loss. If column
b. Date 4. Gross otherbasis | _morethand, | 8 Unrecognized | Fc more than g,
a. Description of property acquired ©. Date sold salesprice | plusexpense | enterditference. | Samonotisetting | enter difference.
ofsale Otherwise, enter Positions. Otherwise, enter
zero. zero.
10
11a_ Enter short-term portion of line 10, column h here and on Schedule D, Part |. Identifyas Form 6781, Partll. . . . |
b_Enter long-term portion of line 10, column h here and on Schedule D, Part Il. Identifyas Form6781, Partll . . .. [( )
Section B.—Gains From Straddles
. GAIN
b. Date e,Cost orother basis | If column dis more than e,
a. Description of property acquired ¢. Date sold 4. Gross sales price plus expense of sale | enter difference. Otherwise,
enter zero.
12

13a_ Enter short-term portion of line 12, column f here and on Schedule D, Part |. Identify as Form 6781, Part Il.

b Enter long-term portion of line 12, column f here and on Schedule D, Part Il. Identify as Form 6781, Part II.

PART IIl.—Unrecognized Gains From Positions Held on Last Day of Tax Year (Memo Entry Only—See Instructions)

a. Description of property b. Date

acquired business day of tax year as adjusted

e. UNRECOGNIZED GAIN

. Fair market value on last d. Cost or other basis If column cis more

than d, enter difference.
Otherwise, enter zero.

14

For Paperwork Reduction Act Notice, see back of form.

Form 6781 (1983)


Instructions

(Section references are to the Internal
Revenue Code.)

Paperwork Reduction Act Notice.—We ask
for this information to carry out the Internal
Revenue laws of the United States. We need it
to ensure that taxpayers are complying with
these laws and to allow us to figure and collect
the right amount of tax. You are required to
give us this information.

Purpose of Form.—Form 6781 is to be used
by individuals, partnerships, fiduciaries,
corporations, etc., that held regulated futures
contracts or straddles.

Form 6781 applies to contracts and
positions established after June 23, 1981.
However, if you made the section 508(c) or
509 election from Public Law 97-34, in 1981,
also include on this form all regulated futures
contracts and positions established before
June 24, 1981 covered by the election. If
either election was not made by the due date
of your 1981 tax return, they cannot be made
in later years.

Do not use Form 6781 to report hedging
transactions, as defined in section 1256(e).
Report them directly on your tax return. Any
gain or loss on a hedging transaction is treated
as ordinary income or loss.

Elections.—

Mixed straddle election.—You may elect not
to have the marked to market rules apply to
regulated futures contracts that are part ofa
mixed straddle. A mixed straddle is any
straddle, at least one (but not all) of the
positions of which is a regulated futures
contract. Each position forming part of the
straddle must be clearly identified on the day
the first regulated futures contract forming
part of the straddle is acquired as being part of
such straddle. If you made this election, it will
apply for all later years as well. It cannot be
revoked without the consent of the
Commissioner. If you made this election,
check box A and report the regulated futures
component in Part Il instead of Part |.

{f you did not make this election, and you
have a loss on the regulated futures
component, use Part II to reduce the loss by
any unrecognized gain on the non-regulated
futures component before making an entry in
Part I. You must also reduce the loss from any
regulated futures component of a straddle
which would be a mixed straddle if the
positions had been properly identified as such.

Attach a computation and indicate in the
property description if the contract is part of a
mixed straddle.

Net commodity futures loss election. — An
individual or partnership having a net
commodity futures loss for 1983 may elect to
carry it back to 1981 or 1982. The amount
which may be carried back cannot be more
than the net commodity futures gain for each
year. The loss is carried to the earliest year
first. See section 1212(c) for definition of net
commodity futures loss and net commodity
futures gain. Make the election by checking
box B and entering the amount to be carried
back in line 6. To carry your loss back, file an
amended Form 6781 for the applicable year,
together with a Form 1040X or amended
return.

Part!

Aregulated futures contract is a contract for
which the amount required to be deposited or
withdrawn depends ona system of marking to
market, and is traded on or subject to the rules

of either (1) a domestic board of trade
designated as a contract market by the
Commodity Futures Trading Commission or
(2) any board of trade or exchange designated
by the Secretary of the Treasury. This includes
any foreign currency contract as defined in
section 1256(g).

Include in Part | all regulated futures
contracts open at the end of your tax year or
closed out during the year. If you receive a
Form 1099-B, enter the amount from boxes 6
and 8 of each form in columns d or e of Form
6781, Part |. In column a of Form 6781, Part!
write “Form 1099-B” and identify the account
by writing the broker's name. Do not complete
columns band c.

On Form 6781, Part |, list each transaction
separately if the Form 1099-B you received is
not for your tax year. Also list each transaction
not included on a Form 1099-B separately.
Complete all columns as follows:

Column a.—Enter the commodity, delivery
date, and indicate whether the property is a
long or short position. Example: Wheat,
December 1984, long.

Column b.—Enter the date you entered into
the regulated futures contract.

Column c.—lf you closed out the regulated
futures contract during 1983, enter the date
closed. If you did not close during 1983, enter
the word “open.”

Columns d and e.—Enter the net gain or loss
from each transaction. If any contract was
open in an earlier year, it will be necessary to
adjust your gain or loss by any earlier year
unrealized gain or loss on that contract ,
before making an entry in column d ore.

Line 4.— If you receive a Form 1099-B and
boxes 6 and 8 of Form 1099-B include a
straddle, hedging transaction, or gain or loss
reported in a prior year, it may be necessary to
make certain adjustments listed in (a) through
(d) below. Attach a schedule listing each
adjustment and enter the total on line 4.

(a) Enter the regulated futures part of a
mixed straddle if you made the mixed straddle
election.

(b) If you did not make the mixed straddle
election or the straddle wasn’t identified as a
mixed straddle and you had a loss on the
regulated futures part which was less than the
unrecognized gain on the non-regulated
futures part, enter the amount of the loss. If
the unrecognized gain is less than the loss,
enter the unrecognized gain.

(c) Enter the regulated futures part of a
hedging transaction.

(d) Enter any gain or loss included in boxes 6
and 8, which was reported ina prior year
because the regulated futures contract was
open at the end of the prior year.

Part Il

Attach a separate schedule listing each
straddle and its component positions. If itis an
identified or mixed straddle, indicate this on
the schedule.

Use section A for losses from positions that
are part of a straddle. A loss is allowed only 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.

Use section B for gains from positions that
are part of a straddle.

Do not include in Part !!, positions that are
part of an identified straddle if all of the
positions are open at the end of the year. if
you closed the entire identified straddle or any
positions of the straddle during the tax year,
then include the straddle in Part Il. An
identified straddle is any straddle (1) clearly
identified on the taxpayer's records, during the

day the straddle is acquired, as an identified
straddle, (2) all of the original positions which
were acquired on the same day were either
disposed of on the same day or none were
disposed of during the tax year, and (3) which
is not part of a larger straddle.

Straddle.—A straddle means offsetting
Positions with respect to personal property.
Offsetting positions.—If there is a
substantial decrease in risk of loss toa
taxpayer holding a position because that
taxpayer or a related party also holds one or
more other positions, then those positions are
offsetting. If any position is not part of an
identified straddle, such position can not be
treated as offsetting any position that is part of
an identified straddle.

For further information concerning
definitions, flow through entities, and specific
rules as to the tax treatment of gains and
losses from straddles, see section 1092.
Column a.—Enter information similar to
Part | for each transaction.

Column b.—Enter the date you entered into
or acquired the position.

Column c.—Enter the date you closed out or
sold the position.

Columns d and e.—For positions sold or
closed out, enter the sales price or closing
price in column d, and the cost or other basis
plus commissions paid in column e. Include in
column e interest and carrying charges
properly allocable to personal property that is
part of a straddle. You cannot deduct these
expenses. See section 263(g) for definition of
interest and carrying charges.

Section A, column f.—Include in this column
any loss not allowed in the prior year to the
extent of the unrecognized gain.

Section A, column g.—Enter the
unrecognized gain on positions offsetting
those in columns a through f. Figure 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 1983 tax year. Do not
enter less than zero.

Lines 11 and 13.—Separate recognized gains
and losses into short-term and long-term.
Attach a separate schedule. For the holding
period for straddle positions, see section

Part Ill

Section 1092 contains a reporting
requirement. You must complete Part Ill 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 settlement price of the position at such
time exceeds your cost or other basis as
adjusted.

Do not include the following in Part III:

© Positions that are part of an identified
straddle;

@ Property that is stock in trade or inventory;

© Positions that are part of a hedging
transaction (as defined in section
1256(e));

© Property used ina trade or business
subject to depreciation.

If you do not have a loss on any position
(including a regulated futures contract) for the
entire tax year, or your only loss was on a
position listed above, do not complete this
part.