1

2 Net gain or (loss). Add the amounts on line 1 in columns (b) and (c)

3

4

Form 1099-B adjustments. See instructions and attach schedule

Combine lines 2 and 3, column (b)

5

If you have a net section 1256 contracts loss and you checked box D above, enter

the amount of that loss to be carried back, as a positive number. Do not enter in

column (c) more than any loss on line 5 

6

7 Combine lines 4 and 6, column (b), and combine lines 5 and 6, column (c)

Short-term capital gain or (loss). Multiply line 7, columns (b) and (c), by 40% (.40).

Enter here and include on the appropriate line of Schedule D (see instructions)

8

Long-term capital gain or (loss). Multiply line 7, columns (b) and (c), by 60% (.60).

Enter here and include on the appropriate line of Schedule D (see instructions)

9

Gains and Losses From Straddles. Attach a separate schedule listing each straddle and its compon

Section A—Losses From Straddles

(h) Recognized

loss for entire

year. If column (f)

is more than (g),

enter difference.

Otherwise, enter

-0-

(f) Loss.

If column (e)

is more than

(d), enter

difference.

Otherwise,

enter -0-

(e) Cost or

other basis

plus

expense of

sale

(g)

Unrecognized

gain on

offsetting

positions

(c) Date 

closed out

or sold

(b) Date 

entered

into or

acquired

(d) Gross

sales price (a) Description of property

10

( )

11a Enter the short-term portion of losses from line 10, columns (h) and (j), here and

include on the appropriate line of Schedule D (see instructions)

( )

Enter the long-term portion of losses from line 10, columns (h), (i), and (j), here and

include on the appropriate line of Schedule D (see instructions)

b

Section B—Gains From Straddles

(f) Gain for entire

year. If column (d) is

more than (e), enter

difference.

Otherwise, enter -0-

12

Enter the short-term portion of gains from line 12, columns (f) and (h), here and

include on the appropriate line of Schedule D (see instructions)

13a

b Enter the long-term portion of gains from line 12, columns (f), (g), and (h), here and

include on the appropriate line of Schedule D (see instructions)

Unrecognized Gains From Positions Held on Last Day of Tax Year. Memo Entry Only (see instr

(e) Unrecogn

If column (c

than (d), ente

Otherwise, 

(d) Cost or other basis 

as adjusted

(c) Fair market value on last

business day of tax year

14

Form 6

Part II

Part III

(e) Cost or other

basis plus expense of

sale

(c) Date 

closed out

or sold

(b) Date 

entered

into or

acquired

(d) Gross

sales price (a) Description of property

(a) Description of property (b) Date 

acquired

Cat. No. 13715G

*(i) 28% rate

loss (see instr.

below)

*(g) 28% rate gain 

(see instr. below)

Note: If line 4 shows a net gain, skip line 6 and enter the line 4 and 5 amounts on

line 7. Partnerships and S corporations, see instructions.

( )

For Paperwork Reduction Act Notice, see page 4.

*28% rate gain or loss includes all “collectibles gains and losses” and up to 50% of the eligible gain on qualified small business stock. See Instructions for Schedule D 

2

13a

11a

11b

13b

3

4

5

6

7

8

9

Combine lines 2 and 3, column (c)

(j) 

in

( 

( 

Po

g

ins
Note: If you did not make any 

above elections and you have 

the section 1256 component, 

to reduce the loss by any unre

gain on the non-section 1256

component before making an 

Part I. You also must reduce th

from any section 1256 compon

straddle that would be a mixed 

if the positions had been prop

identified as such.

Box D. Net Section 12

Contracts Loss Electi

Offsetting Positions

Box A. Mixed Straddle

Election

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

Purpose of Form

● Any gain or loss on section 1256

contracts under the mark-to-market

rules and

Section 1256 Contract

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),

showing the net gain or loss reported

from those contracts and identifying

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.

● Gains and losses under section 1092

from straddle positions.

For details on section 1256 contracts

and straddles, see Pub. 550, Investment

Income and Expenses.

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).

Straddle

A straddle means offsetting positions

with respect to personal property of a

type that is actively traded.

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 will not be treated as offsetting

with respect to any position which is

part of the identified straddle.

A section 1256 contract is any:

For definitions of these terms and

more details, see section 1256(g) and

Pub. 550.

Use Form 6781 to report:

● Regulated futures contract,

● Foreign currency contract,

● Nonequity option,

● Dealer equity option, or

Under section 1256(d), you may 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 cannot be

revoked without IRS consent. If you are

making or have previously made this

election, check box A and report the

section 1256 component in Part II

instead of Part I.

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.

Box B. Straddle-By-Straddle

Identification Election

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

mixed straddle accounts for 2

the due date (without extensio

2003 tax return. To make this 

check box C and attach to yo

the statement required by the

regulations. Report the annual 

net gain or loss from a mixed 

account in Part II and identify 

election. See Temporary Regu

section 1.1092(b)-4T(c)(4) for li

the total annual account net g

If you have a net section 1256 

loss for 2003, you may elect to 

back 3 years. Corporations,

partnerships, estates, and trus

eligible to make this election. Y

section 1256 contracts loss 

smaller of:

● Dealer securities futures contract.

● The excess of your losses f

section 1256 contracts over th

(a) your gains from section 12

contracts plus (b) $3,000 ($1,5

married filing separately) or

● The total you would figure a

short-term and long-term capi

carryovers to 2004 if line 6 of 

were zero. Use a separate Sch

(Form 1040) and Capital Loss

Carryover Worksheet (in Pub

figure this amount.

The amount you may carry b

any prior year is limited to the 

of:

● The gain, if any, that you wo

on line 17 of Schedule D for th

carryback year if only gains an

from section 1256 contracts w

into account or

● The gain, if any, reported on 

Schedule D for that carryback 

been reduced to 5%, for sales and other

dispositions after May 5, 2003 (and

installment payments received after that

date). Therefore, a new column has been

added to Form 6781 to identify

post-May 5 gain or loss. The 28% rate

on collectibles gain and section 1202

gain has not changed. See the

instructions for Schedule D (Form 1040

or Form 1041) for other details.

Gains or losses on section 1256

contracts open at the end of the year, or

terminated during the year, are treated
Line 4

that are part of a straddle.

Do not include in Part II a d

of one or more positions that a

a hedging transaction, a dispo

loss position included in an ide

straddle, or a disposition of a 

that is part of a straddle if all t

positions of the straddle are se

1256 contracts.

Column (a)

Column (d)

Line 10, Column (f)

Line 10, Column (i) and Li

Column (g)

● The regulated futures 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.

Column (e)

Line 9

Line 10, Column (g)

Partnerships enter the amount from line

4 on Form 1065, Schedule K, line 7.

Electing large partnerships enter the

amount from line 4 on Form 1065-B,

Part II, line 5. S corporations enter the

amount from line 4 on Form 1120S,

Schedule K, line 6. Partnerships and S

corporations must attach a statement for

the above lines that separately identifies

the amount of post-May 5, 2003, gain or

loss from line 5 of Form 6781. Lines 6

through 9 in Part I do not apply to

partnerships or S corporations and are

left blank.

Include the columns (b) and (c) amounts

on Schedule D (Form 1040), line 4,

columns (f) and (g); or on Schedule D

(Form 1041), line 2, columns (f) and (g).

Or enter the column (b) amount as a

short-term capital gain or (loss) on the

Schedule D for your return, and enter

“Form 6781, Part I” in column (a) of that

Schedule D.

Include the columns (b) and (c) amounts

on Schedule D (Form 1040), line 11,

columns (f) and (g); or on Schedule D

(Form 1041), line 7, columns (f) and (g).

Or enter the column (b) amount as a

long-term capital gain or (loss) on the

Schedule D for your return, and enter

“Form 6781, Part I” in column (a) of that

Schedule D.

Enter the property and delivery 

and indicate whether the prop

long or short position.

For positions closed out or so

the closing price or sales price

For positions closed out or so

the cost or other basis plus

commissions paid. Include

nondeductible interest and car

charges allocable to personal 

that is part of a straddle. See 

for details.

Include in this column any loss 

allowed in the prior year to the 

the unrecognized gain.

Enter the unrecognized gain o

offsetting those in columns (a) 

(f). Figure the amount to enter 

column by subtracting the cos

basis of the offsetting position 

settlement price of that positio

the close of the last business 

your 2003 tax year.

Enter in these columns the ga

for 28% rate transactions.

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

non-section 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.

Line 6

See the instructions for Box D.

Line 8

Line 10, Column (j) and Li

Column (h)

Enter in these columns the ga

from dispositions or other term

of a position after May 5, 2003

not include any 28% rate gain 

Part I

Line 1

Specific Instructions

Include on line 1 all 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

equivalent statement, include on line 1,

column (b), the amount from box 9a of

each form. Include in column (c) the

amount from box 9b. (Disregard the

second sentence of the instructions for

box 6b in the Form 1099-B Instructions

for Recipient, which incorrectly says to

include the box 6b amount in column

(c).) In column (a), write “Form 1099-B”

and the broker’s name. List separately

each transaction for which you did not

receive a Form 1099-B or equivalent

statement, or received a Form 1099-B

that is not for your tax year.

Refund, or an amended return. Attach

an amended Form 6781 and an

amended Schedule D 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).

Line 3

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 below. Attach

a schedule listing each of these

adjustments and enter the total(s) on

line 3, column (b), and if appropriate,

column (c).

If you are completing an amended

2003 Form 6781 to carry back a net

section 1256 contracts loss from 2004 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 2003 in column (b).

See the instructions for Box D for

details.
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.

Printed on recycled paper

If you have comments conce

accuracy of these time estima

suggestions for making this fo

simpler, we would be happy to 

you. See the instructions for th

return with which this form is f

The time needed to complet

this form will vary depending o

individual circumstances. The 

average time is:

ask for the information on this 

carry out the Internal Revenue 

the United States. You are req

give us the information. We ne

ensure that you are complying 

these laws and to allow us to 

collect the right amount of tax

You are not required to prov

information requested on a for

subject to the Paperwork Redu

unless the form displays a vali

control number. Books or reco

relating to a form or its instruc

be retained as long as their co

may become material in the

administration of any Internal R

law. Generally, tax returns and 

information are confidential, as 

by section 6103.

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.

Recordkeeping 14 

Learning about the 

law or the form 2 h

Preparing the form 3 h

Copying, assembling,

and sending the form

to the IRS 

Line 11a

Include the columns (h) and (j) amounts

on Schedule D (Form 1040), line 4,

columns (f) and (g); or on Schedule D

(Form 1041), line 2, columns (f) and (g).

Or enter the column (h) amount as a

short-term capital loss on the Schedule

D for your return, enter the column (j)

amount in column (g) of that Schedule D

(if your return is a Form 1065, Form

1065-B, or Form 1120S), and enter

“Form 6781, Part II” in column (a) of that

Schedule D.

Line 11b, Columns (h) and (j)

Include the columns (h) and (j) amounts

on Schedule D (Form 1040), line 11,

columns (f) and (g); or on Schedule D

(Form 1041), line 7, columns (f) and (g).

Or enter the column (h) amount as a

long-term capital loss on the Schedule D

for your return, enter the column (j)

amount in column (g) of that Schedule D

(if your return is a Form 1065, Form

1065-B, or Form 1120S), and enter

“Form 6781, Part II” in column (a) of that

Schedule D.

Line 13a

Include the columns (f) and (h) amounts

on Schedule D (Form 1040), line 4,

Line 13b, Columns (f) and (h)

Include the columns (f) and (h) amounts

on Schedule D (Form 1040), line 11,

columns (f) and (g); or on Schedule D

(Form 1041), line 7, columns (f) and (g).

Or enter the column (f) amount as a

long-term capital gain on the Schedule

D for your return, enter the column (h)

amount in column (g) of that Schedule D

(if your return is a Form 1065, Form

1065-B, or Form 1120S), and enter

“Form 6781, Part II” in column (a) of that

Schedule D.

Line 11b, Column (i) and Line 13b,

Column (g)

Include the line 11b, column (i) and line

13b, column (g) amounts on line 3 of the

28% Rate Gain Worksheet in the

Instructions for Schedule D (Form 1040)

if you must complete Schedule D (Form

1040), line 20; or on line 3 of the 28%

Rate Gain Worksheet in the Instructions

for Form 1041 and Schedules A, B, D,

G, I, J, and K-1 if you must complete

Schedule D (Form 1041), line 15e.