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Level 4
June 17, 2020
Question

Form 6781 not generating in partnership return

  • June 17, 2020
  • 1 reply
  • 9 views

I have a k-1 with an amount in Box 11 (C) Section 1256 Contracts and Straddles.  I entered the information on the Passthru K-1 tab.  Why is it not generating Form 6781?

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1 reply

itonewbie
Level 15
June 17, 2020

If you are preparing a partnership return, why would you expect F.6781 to be generated for the Line 11C item from a pass-through K-1?  The income is taxable at the shareholder level and it will then be reported on F.6781 of the shareholder's return.

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itonewbie
Level 15
June 17, 2020

On the other hand, if you are preparing a 1040 the amount entered on Screen 20.1, under the section for Line 11 - Other, on the line for (11C) 1256 gain (loss) will flow correctly to F.6781.

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