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                                          Gains and Losses From Section 1256                                                                   OMB No. 1545-0644 
Form  6781                                               Contracts and Straddles 
Department of the Treasury                                        Attach to your tax return.                                                   Attachment2023
Internal Revenue Service                      Go to www.irs.gov/Form6781 for the latest information.                                           Sequence No.  82
Name(s) shown on tax return                                                                                                               Identifying number 

Check all applicable boxes.             A    Mixed straddle election                                 C      Mixed straddle account election 
See instructions.                       B    Straddle-by-straddle identification 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         (c) Date      (d) Gross       (e) Cost or        (f) Loss.                  (g)     (h) Recognized loss.
                                          entered into  closed out    sales price      other basis       If column (e) is        Unrecognized  If column (f) is 
                                          or acquired      or sold                     plus expense      more than (d),              gain on   more than (g), 
                                                                                         of sale       enter difference.         offsetting    enter difference. 
                                                                                                            Otherwise,           positions     Otherwise, enter -0-. 
                                                                                                            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     (c) Date          (d) Gross                   (e) Cost or      (f) Gain. 
                                                                    entered into  closed out        sales price                  other basis   If column (d) is 
                                                                    or acquired    or sold                                     plus expense    more than (e), 
                                                                                                                                 of sale       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    (c) Fair market                   (d) Cost or   (e) Unrecognized 
                                                                                   acquired      value on last                   other basis   gain. If column (c) 
                                                                                                 business day                  as adjusted     is more than (d), 
                                                                                                    of tax year                                enter difference. 
                                                                                                                                               Otherwise, enter -0-. 
14 

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

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Form 6781 (2023) Page 2
Section references are to the Internal account in figuring net earnings subject Box B. Straddle-by-Straddle
Revenue Code unless otherwise noted. to self-employment tax. See section Identification Election
1402(i).
Future Developments Make this election for mixed straddles
Mark-to-Market Rules according to Temporary Regulations
For the latest information about section 1.1092(b)-3T(d) by clearly
developments related to Form 6781 and Under these rules, each section 1256
its instructions, such as legislation contract held at year end is treated as if identifying each position by the earlier of
enacted after they were published, go to it were sold at fair market value (FMV) on (a) the close of the day the identified
www.irs.gov/Form6781. the last business day of the tax year. The mixed straddle is established, or (b) the
wash sale rules don’t apply. time the position is disposed of. No
straddle-by-straddle identification
Reminder If your section 1256 contracts produce election may be made for any straddle
capital gain or loss, gains or losses on for which a mixed straddle election was
Qualified Opportunity Investment section 1256 contracts open at the end made or if one or more positions are
If you held a qualified investment in a of the year, or terminated during the includible in a mixed straddle account. If
qualified opportunity fund (QOF) at any year, are treated as 60% long term and you are making or have previously made
time during the year, you must file your 40% short term, regardless of how long this election, check box B.
return with Form 8997. See the the contracts were held.
If you make this election, any positions
Instructions for Form 8997. The mark-to-market rules don’t apply you held on the day before the election
if you properly and timely identified a are deemed sold for their FMV at the
General Instructions section 1256 contract as a hedge. close of the last business day before the
Purpose of Form Straddle day of the election. For elections made
on or before August 18, 2014, take this
Use Form 6781 to report: A straddle means offsetting positions gain or loss into account when
with respect to personal property of a computing taxable income for the year in
• Any capital gain or loss on section type that is actively traded. which the election was made. For
1256 contracts under the mark-to-
market rules, and Offsetting Positions elections made after August 18, 2014,
take this gain or loss into account in the
• Gains and losses under section 1092 If there is a substantial decrease in risk year you would have reported the gain or
from straddle positions. of loss to a taxpayer holding a position loss if the identified mixed straddle had
For details on section 1256 contracts because that taxpayer or a related party not been established. In addition, when
and straddles, see Pub. 550, Investment also holds one or more other positions, the gain or loss that accrued prior to the
Income and Expenses. then those positions are offsetting and time the identified mixed straddle was
may be part of a straddle. However, if an established is taken into account, it will
Section 1256 Contract identified straddle is properly have the same character it would have
A section 1256 contract is any: established, other positions held by the had if the identified mixed straddle had
taxpayer won’t be treated as offsetting not been established. See Regulations
• Regulated futures contract, with respect to any position that is part section 1.1092(b)-6 for details.
• Foreign currency contract, of the identified straddle.
Each year you hold positions subject
• Nonequity option, General Rule for Straddles to this election, you must mark to market
• Dealer equity option, or If you don’t make any of the elections your section 1256 contracts and
• Dealer securities futures contract. described in box A, B, or C, and you determine, in accordance with
For definitions of these terms and have a loss on the section 1256 contract Regulations sections 1.1092(b)-3T and
more details, see section 1256(g) and component, use Part II to reduce the 1.1092(b)-6, whether you have a net gain
Pub. 550. loss by any unrecognized gain on the or loss. If the net gain or loss is
non-section 1256 contract component attributable to a net non-section 1256
A section 1256 contract doesn’t before making an entry in Part I. You position, then the net gain or loss is
include any securities future contract, must also reduce the loss from any treated as a short-term capital gain or
option on a securities future contract, section 1256 contract component of a loss. Enter it directly on Form 8949 and
interest rate swap, currency swap, basis straddle that would be a mixed straddle identify the election. If the net gain or
swap, commodity swap, equity swap, if the positions had been properly loss is attributable to a section 1256
equity index swap, credit default swap, identified as such. position, enter the gain or loss on Form
interest rate cap, interest rate floor, or 6781, Part I, and identify the election.
similar agreement. Box A. Mixed Straddle Election
Box C. Mixed Straddle Account
Special rules apply to certain foreign Under section 1256(d), you can elect to
currency contracts. See section 988 and have the mark-to-market rules not apply Election
Regulations sections 1.988-1(a)(7) and to section 1256 contracts that are part of Make this election according to
1.988-3. If an election is made under a mixed straddle. A mixed straddle is Temporary Regulations section
section 988(a)(1)(B) or 988(c)(1)(D), attach any straddle in which at least one but not 1.1092(b)-4T(f) to establish one or more
to your return a list of the contracts all of the positions is a section 1256 mixed straddle accounts for 2024 by the
covered by the election(s). On the contract. On the day the first section due date (without extensions) of your
attachment, show the net gain or loss 1256 contract forming part of the 2023 tax return. To make this election,
reported from those contracts and straddle is acquired, each position check box C and attach to your return
identify where the gain or loss is forming part of the straddle must be (or your request for an extension of time
reported on the return. If an election is clearly identified as being part of such to file) the statement required by the
made under section 988(a)(1)(B), report straddle. If you make this election, it will regulations. Report the annual account
on Form 6781 the gains and losses from apply for all later years and you can’t net gain or loss from a mixed straddle
section 1256 contracts that are also revoke it without IRS consent. If you are account in Part II and identify the
section 988 transactions. making or have previously made this election. See Temporary Regulations
Options and commodities dealers election, check box A and report the section 1.1092(b)-4T(c)(4) for limits on
must take any gain or loss from the section 1256 contract component in the total annual account net gain or loss.
trading of section 1256 contracts into Part II instead of in Part I.

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Form 6781 (2023) Page 3
Box D. Net Section 1256 Contracts broker’s name. List separately each include this amount on Schedule D
Loss Election transaction for which you didn’t receive (Form 1040), line 4; or on Schedule D
a Form 1099-B or substitute statement, (Form 1041), line 4. If you are deferring
If you have a net section 1256 contracts or received a Form 1099-B that isn’t for any of this amount due to an investment
loss for 2023, you can elect to carry it your tax year. in a QOF, follow the instructions in the
back 3 years. Corporations, next paragraph.
partnerships, estates, and trusts are not If you are completing an amended
eligible to make this election. Your net 2023 Form 6781 to carry back a net For other returns, enter it in Part I of a
section 1256 contracts loss is the section 1256 contracts loss from 2024 or Form 8949 with box B checked (if you
smaller of: a later year, report the carryback on line received a Form 1099-B or substitute
1. Enter “Net section 1256 contracts loss statement for every transaction included
• The excess of your losses from carried back from” and the tax year in on line 1) or box C checked (if you can’t
section 1256 contracts over the total of column (a), and enter the amount of the check box B). Enter “Form 6781, Part I”
(a) your gains from section 1256 loss carried back to 2023 in column (b). on line 1 in column (a). Enter the gain or
contracts plus (b) $3,000 ($1,500 if See the instructions for box D for details. (loss) in column (h). Leave all other
married filing separately), or columns blank.
• The total you would figure as your Line 4
short-term and long-term capital loss For information about how to Line 9
carryovers to 2024 if line 6 of Form 6781 elect to defer capital gain net If you are not deferring any of this
were zero. Use a separate Schedule D ▲! income because you invested amount due to an investment in a QOF,
(Form 1040) and Capital Loss Carryover CAUTION in a QOF, see the Instructions include this amount on Schedule D
Worksheet (in Pub. 550) to figure this for Form 8949. Don’t use line 4 to show (Form 1040), line 11; or on Schedule D
amount. the adjustment for a QOF-related (Form 1041), line 11. If you are deferring
The amount you can carry back to any deferral. any of this amount due to an investment
prior year is limited to the smaller of: If the Form 1099-B you received includes in a QOF, follow the instructions in the
• The gain, if any, that you would report a straddle or hedging transaction (as next paragraph.
on line 16 of Schedule D (Form 1040) for defined in section 1256(e)(2)), you may For other returns, enter it in Part II of a
that carryback year if only gains and need to make certain adjustments, listed Form 8949 with box E checked (if you
losses from section 1256 contracts were next. Attach a statement listing each of received a Form 1099-B or substitute
taken into account; or these adjustments and enter the total(s) statement for every transaction included
on line 4. on line 1) or box F checked (if you can’t
• The gain, if any, reported on line 16 of check box E). Enter “Form 6781, Part I”
Schedule D (Form 1040) for that • The section 1256 contract part of a
carryback year. mixed straddle, if you made any of the on line 1 in column (a). Enter the gain or
mixed straddle elections. (loss) in column (h). Leave all other
The amounts just described are columns blank.
figured prior to any carryback from the • The amount of the loss, if you didn’t
loss year. Also, the carryback is allowed make any of the mixed straddle elections If you held a qualified
only to the extent it doesn’t increase or or the straddle wasn’t identified as a investment in a QOF at any
produce a net operating loss for the mixed straddle and you had a loss on ▲! time during the year, you must
CAUTION
carryback year. The loss is carried to the the section 1256 contract part that was file your return with Form
earliest year first. less than the unrecognized gain on the 8997. See the Instructions for Form 8997
non-section 1256 contract part. If the for more information.
Make the election by checking box D unrecognized gain is less than the loss,
and entering the amount to be carried enter the unrecognized gain. Use Part I Part II
back on line 6. To carry your loss back, for a loss on the disposition of one or Use Section A for losses from positions
file Form 1045, Application for Tentative more positions that are part of a mixed that are part of a straddle. Generally, a
Refund, or an amended return. Attach an straddle and that are non-section 1256 loss is allowed to the extent it exceeds
amended Form 6781 and an amended positions if no disposition of a non- the unrecognized gain on offsetting
Schedule D (Form 1040) for the section 1256 position in the straddle positions. The part of the loss not
applicable years. would be a long-term capital gain or loss allowed is treated as if incurred in the
On the amended Forms 6781 for the and the disposition of one or more following year and is allowed to the
years to which the loss is carried back, section 1256 positions in the straddle same extent. However, a loss from a
report the carryback on line 1 of that would be a capital gain or loss. position established in an identified
year’s amended Form 6781. Enter “Net • The section 1256 contract part of a straddle after October 21, 2004, isn’t
section 1256 contracts loss carried back hedging transaction. The gain or loss on a allowed. Instead, the basis of each
from” and the tax year in column (a), and hedging transaction is treated as ordinary offsetting position in the identified
enter the amount of the loss carried income or loss. See Pub. 550 for details. straddle that has unrecognized gain is
back in column (b). increased by the amount of the
Line 5 unallowed loss multiplied by the
Specific Instructions Partnerships enter the amount from line following fraction:
5 on Form 1065, Schedule K, line 11. The unrecognized gain (if any)
Part I S corporations enter the amount from on the offsetting position
Line 1 line 5 on Form 1120-S, Schedule K, line
10. Lines 6 through 9 on Form 6781, The total unrecognized gain on
Include on line 1 all capital gains and Part I, don’t apply to partnerships or S all positions that offset the loss
losses from section 1256 contracts open corporations and are left blank. position in the identified straddle
at the end of your tax year or closed out For more details, see chapter 4 of
during the year. If you received a Form Line 6 Pub. 550.
1099-B, Proceeds From Broker and See the instructions for box D. Use Section B for gains from positions
Barter Exchange Transactions, or
substitute statement, include on line 1 Line 8 that are part of a straddle.
the amount from box 11 of each form. In If you are not deferring any of this
column (a), enter “Form 1099-B” and the amount due to an investment in a QOF,

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Form 6781 (2023) Page 4
Don’t include in Part II a disposition of Line 11a Form 1041. If you must complete the
any of the following. Include this amount on Schedule D 28% Rate Gain Worksheet in the
• A position that is part of a hedging (Form 1040), line 4; or on Schedule D Instructions for Schedule D (Form 1041),
transaction. (Form 1041), line 4. include the collectibles gain or (loss)
from Part II on line 3 of that worksheet.
• A loss position included in an identified For other returns, enter it in Part I of a
straddle established before October 22, Form 8949 with box C checked. Enter Part III
2004, unless you disposed of all of the “Form 6781, Part II” on line 1 in column
positions making up the straddle. (a). Enter the (loss) as a negative number Complete Part III by listing each position
• A loss position included in an identified (in parentheses) in column (h). Leave all (whether or not part of a straddle) that
straddle established after October 21, other columns blank. you held at the end of the tax year
(including any position you are treated as
2004. Line 11b holding because it is held by a related
• A position that is part of a straddle if all Include this amount on Schedule D party) if the FMV of the position at such
of the positions of the straddle are (Form 1040), line 11; or on Schedule D time exceeds your cost or other basis as
section 1256 contracts. (Form 1041), line 11. adjusted.
Line 10, Column (a) For other returns, enter it in Part II of a Don’t include positions that are part of
Enter the property and delivery date and Form 8949 with box F checked. Enter an identified straddle or hedging
indicate whether the property is a long or “Form 6781, Part II” on line 1 in column transaction, property that is stock in
short position. (a). Enter the (loss) as a negative number trade or inventory, or property subject to
(in parentheses) in column (h). Leave all depreciation used in a trade or business.
Line 10, Column (d) other columns blank. Don’t complete Part III if you don’t
have a recognized loss on any position
For positions closed out or sold, enter Line 13a (including section 1256 contracts).
the closing price or sales price.
If you are not deferring any of this
Line 10, Column (e) amount due to an investment in a QOF, Paperwork Reduction Act Notice. We
For positions closed out or sold, enter include this amount on Schedule D ask for the information on this form to
the cost or other basis plus commissions (Form 1040), line 4; or on Schedule D carry out the Internal Revenue laws of
paid. Include nondeductible interest and (Form 1041), line 4. If you are deferring the United States. You are required to
carrying charges allocable to personal any of this amount due to an investment give us the information. We need it to
property that is part of a straddle. If any in a QOF, follow the instructions in the ensure that you are complying with these
part of an unallowed loss from an next paragraph. laws and to allow us to figure and collect
offsetting position established in an For other returns, enter it in Part I of a the right amount of tax.
identified straddle after October 21, Form 8949 with box C checked. Enter You are not required to provide the
2004, increased your basis in the “Form 6781, Part II” on line 1 in column information requested on a form that is
position, also include that amount. See (a). Enter the gain in column (h). Leave all subject to the Paperwork Reduction Act
Pub. 550 for details. other columns blank. unless the form displays a valid OMB
control number. Books or records
Line 10, Column (f) Line 13b relating to a form or its instructions must
Include in this column any loss not If you are not deferring any of this amount be retained as long as their contents
allowed in the prior year to the extent of due to an investment in a QOF, include may become material in the
the unrecognized gain. this amount on Schedule D (Form 1040), administration of any Internal Revenue
Line 10, Column (g) line 11; or on Schedule D (Form 1041), line law. Generally, tax returns and return
11. If you are deferring any of this amount information are confidential, as required
Enter the unrecognized gain on positions due to an investment in a QOF, follow the by section 6103.
offsetting those in columns (a) through instructions in the next paragraph. The time needed to complete and file
(f). Include unrecognized gain on any
position you are treated as holding For other returns, enter it in Part II of a this form and related schedules will vary
because it is held by a related party. Form 8949 with box F checked. Enter depending on individual circumstances.
Figure the amount to enter in this column “Form 6781, Part II” on line 1 in column The estimated burden for individual and
by subtracting the cost or other basis of (a). Enter the gain in column (h). Leave all business taxpayers filing this form is
the offsetting position from the other columns blank. approved under OMB control numbers
settlement price of that position as of the Collectibles gain or (loss). A collectibles 1545-0074 and 1545-0123, respectively,
close of the last business day of your gain or (loss) is any long-term gain or and is included in the estimates shown in
2023 tax year. deductible long-term loss from the sale the instructions for their individual and
or exchange of a collectible that is a business income tax return. The
Lines 11 and 13 capital asset. Collectibles include works estimated burden for all other taxpayers
Separate recognized gains and losses of art, rugs, antiques, metals (such as who file this form is shown below.
into short term and long term. Attach a gold, silver, and platinum bullion), gems, Recordkeeping . . . . 8 hr., 36 min.
separate statement for each. For stamps, coins, alcoholic beverages, and Learning about the
information about holding periods for certain other tangible property. law or the form . . . . 1 hr., 57 min.
straddle positions, see Pub. 550 and If any of the gain or loss you reported Preparing the form . . 3 hr., 7 min.
Temporary Regulations section in Part II is a collectibles gain or (loss)
1.1092(b)-2T. and you are filing Form 1040, 1040-SR, Copying, assembling,
Attach separate statements for (a) or 1041, follow the instructions below for and sending the form
section 988 contracts that are part of a the form you file. to the IRS . . . . . . . . 16 min.
mixed straddle, and (b) any gain on the Form 1040 or 1040-SR. If you If you have comments concerning the
disposition or other termination of any checked “Yes” on line 17 of Schedule D accuracy of these time estimates or
position held as part of a conversion (Form 1040), include the collectibles gain suggestions for making this form
transaction (as defined in section or (loss) from Part II on line 3 of the 28% simpler, we would be happy to hear from
1258(c)). Identify the net gain or loss and Rate Gain Worksheet in the Instructions you. See the instructions for the tax
report it on Form 4797, line 10. for Schedule D (Form 1040). return with which this form is filed.

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