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                                                                                                                                               OMB No. 1545-0644 
                                          Gains and Losses From Section 1256 
Form  6781                                               Contracts and Straddles 
Department of the Treasury                ▶ Go to www.irs.gov/Form6781 for the latest information.                                             2021
                                                                                                                                               Attachment 
Internal Revenue Service                                        ▶ Attach to your tax return.                                                   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 (2021)

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Form 6781 (2021) Page 2

Section references are to the Internal account in figuring net earnings subject to Box B. Straddle-by-Straddle
Revenue Code unless otherwise noted. self-employment tax. See section 1402(i). Identification Election
What’s New Mark-to-Market Rules Make this election for mixed straddles
according to Temporary Regulations
Qualified Opportunity Investment Under these rules, each section 1256 section 1.1092(b)-3T(d) by clearly
contract held at year end is treated as if identifying each position by the earlier of
If you held a qualified investment in a it were sold at fair market value (FMV) on (a) the close of the day the identified
qualified opportunity fund (QOF) at any the last business day of the tax year. The mixed straddle is established, or (b) the
time during the year, you must file your wash sale rules don’t apply. time the position is disposed of. No
return with Form 8997. See the
Instructions for Form 8997. If your section 1256 contracts produce straddle-by-straddle identification
capital gain or loss, gains or losses on election may be made for any straddle
Future Developments section 1256 contracts open at the end for which a mixed straddle election was
For the latest information about of the year, or terminated during the made or if one or more positions are
developments related to Form 6781 and year, are treated as 60% long term and includible in a mixed straddle account. If
its instructions, such as legislation 40% short term, regardless of how long you are making or have previously made
enacted after they were published, go to the contracts were held. this election, check box B.
www.irs.gov/Form6781. The mark-to-market rules don’t apply If you make this election, any positions
if you properly and timely identified a you held on the day before the election
General Instructions section 1256 contract as a hedge. are deemed sold for their FMV at the
close of the last business day before the
Straddle day of the election. For elections made
Purpose of Form A straddle means offsetting positions on or before August 18, 2014, take this
Use Form 6781 to report: with respect to personal property of a gain or loss into account when
• Any capital gain or loss on section type that is actively traded. computing taxable income for the year in
which the election was made. For
1256 contracts under the mark-to- Offsetting Positions elections made after August 18, 2014,
market rules, and
If there is a substantial decrease in risk take this gain or loss into account in the
• Gains and losses under section 1092 of loss to a taxpayer holding a position year you would have reported the gain or
from straddle positions. because that taxpayer or a related party loss if the identified mixed straddle had
For details on section 1256 contracts also holds one or more other positions, not been established. In addition, when
and straddles, see Pub. 550, Investment then those positions are offsetting and the gain or loss that accrued prior to the
Income and Expenses. may be part of a straddle. However, if an time the identified mixed straddle was
identified straddle is properly established is taken into account, it will
Section 1256 Contract established, other positions held by the have the same character it would have
A section 1256 contract is any: taxpayer won’t be treated as offsetting had if the identified mixed straddle had
• Regulated futures contract, with respect to any position that is part not been established. See Regulations
of the identified straddle. section 1.1092(b)-6 for details.
• Foreign currency contract,
• Nonequity option, General Rule for Straddles Each year you hold positions subject
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
described in box A, B, or C, and you determine, in accordance with
• Dealer securities futures contract. have a loss on the section 1256 contract Regulations sections 1.1092(b)-3T and
For definitions of these terms and more component, use Part II to reduce the 1.1092(b)-6, whether you have a net gain
details, see section 1256(g) and Pub. 550. loss by any unrecognized gain on the or loss. If the net gain or loss is
A section 1256 contract doesn’t non-section 1256 contract component attributable to a net non-section 1256
include any securities future contract, before making an entry in Part I. You position, then the net gain or loss is
option on a securities future contract, must also reduce the loss from any treated as a short-term capital gain or
interest rate swap, currency swap, basis section 1256 contract component of a loss. Enter it directly on Form 8949 and
swap, commodity swap, equity swap, straddle that would be a mixed straddle identify the election. If the net gain or
equity index swap, credit default swap, if the positions had been properly loss is attributable to a section 1256
interest rate cap, interest rate floor, or identified as such. position, enter the gain or loss on Form
similar agreement. Box A. Mixed Straddle Election 6781, Part I, and identify the election.
Special rules apply to certain foreign Under section 1256(d), you can elect to Box C. Mixed Straddle Account
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
1.988-3. If an election is made under a mixed straddle. A mixed straddle is Make this election according to
section 988(a)(1)(B) or 988(c)(1)(D), attach any straddle in which at least one but not Temporary Regulations section
to your return a list of the contracts all of the positions is a section 1256 1.1092(b)-4T(f) to establish one or more
covered by the election(s). On the contract. On the day the first section mixed straddle accounts for 2022 by the
attachment, show the net gain or loss 1256 contract forming part of the due date (without extensions) of your
reported from those contracts and straddle is acquired, each position 2021 tax return. To make this election,
identify where the gain or loss is forming part of the straddle must be check box C and attach to your return
reported on the return. If an election is clearly identified as being part of such (or your request for an extension of time
made under section 988(a)(1)(B), report straddle. If you make this election, it will to file) the statement required by the
on Form 6781 the gains and losses from apply for all later years and you can’t regulations. Report the annual account
section 1256 contracts that are also revoke it without IRS consent. If you are net gain or loss from a mixed straddle
section 988 transactions. making or have previously made this account in Part II and identify the
Options and commodities dealers election, check box A and report the election. See Temporary Regulations
must take any gain or loss from the section 1256 contract component in section 1.1092(b)-4T(c)(4) for limits on
trading of section 1256 contracts into Part II instead of in Part I. the total annual account net gain or loss.

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Form 6781 (2021) Page 3

Box D. Net Section 1256 Contracts broker’s name. List separately each amount due to an investment in a QOF,
Loss Election transaction for which you didn’t receive include this amount on Schedule D
a Form 1099-B or substitute statement, (Form 1040), line 4; or on Schedule D
If you have a net section 1256 contracts or received a Form 1099-B that isn’t for (Form 1041), line 4. If you are deferring
loss for 2021, you can elect to carry it your tax year. any of this amount due to an investment
back 3 years. Corporations, partnerships, in a QOF, follow the instructions in the
estates, and trusts are not eligible to If you are completing an amended
make this election. Your net section 1256 2021 Form 6781 to carry back a net next paragraph.
contracts loss is the smaller of: section 1256 contracts loss from 2022 or For other returns, enter it in Part I of a
a later year, report the carryback on line Form 8949 with box B checked (if you
• The excess of your losses from 1. Enter “Net section 1256 contracts loss received a Form 1099-B or substitute
section 1256 contracts over the total of carried back from” and the tax year in statement for every transaction included
(a) your gains from section 1256 column (a), and enter the amount of the on line 1) or box C checked (if you can’t
contracts plus (b) $3,000 ($1,500 if loss carried back to 2021 in column (b). check box B). Enter “Form 6781, Part I”
married filing separately), or See the instructions for box D for details. on line 1 in column (a). Enter the gain or
• The total you would figure as your (loss) in column (h). Leave all other
short-term and long-term capital loss Line 4
columns blank.
carryovers to 2022 if line 6 of Form 6781 For information about how to
were zero. Use a separate Schedule D elect to defer capital gain net Line 9
(Form 1040) and Capital Loss Carryover ▲! income because you invested If you are not deferring any of this
Worksheet (in Pub. 550) to figure this CAUTION in a Qualified Opportunity amount due to an investment in a QOF,
amount. Fund (QOF), see the Instructions for include this amount on Schedule D
The amount you can carry back to any Form 8949. Don’t use line 4 to show the (Form 1040), line 11; or on Schedule D
prior year is limited to the smaller of: adjustment for a QOF-related deferral. (Form 1041), line 11. If you are deferring
• The gain, if any, that you would report If the Form 1099-B you received includes any of this amount due to an investment
on line 16 of Schedule D (Form 1040) for a straddle or hedging transaction (as in a QOF, follow the instructions in the
that carryback year if only gains and defined in section 1256(e)(2)), you may next paragraph.
losses from section 1256 contracts were need to make certain adjustments, listed For other returns, enter it in Part II of a
taken into account; or next. Attach a statement listing each of Form 8949 with box E checked (if you
• The gain, if any, reported on line 16 of these adjustments and enter the total(s) received a Form 1099-B or substitute
Schedule D (Form 1040) for that on line 4. statement for every transaction included
carryback year. • The section 1256 contract part of a on line 1) or box F checked (if you can’t
The amounts just described are mixed straddle, if you made any of the check box E). Enter “Form 6781, Part I”
figured prior to any carryback from the mixed straddle elections. on line 1 in column (a). Enter the gain or
(loss) in column (h). Leave all other
loss year. Also, the carryback is allowed • The amount of the loss, if you didn’t columns blank.
only to the extent it doesn’t increase or make any of the mixed straddle elections
produce a net operating loss for the or the straddle wasn’t identified as a If you held a qualified
carryback year. The loss is carried to the mixed straddle and you had a loss on investment in a qualified
earliest year first. the section 1256 contract part that was ▲! opportunity fund (QOF) at any
Make the election by checking box D less than the unrecognized gain on the CAUTIONtime during the year, you must
and entering the amount to be carried non-section 1256 contract part. If the file your return with Form 8997. See the
back on line 6. To carry your loss back, unrecognized gain is less than the loss, Instructions for Form 8997 for more
file Form 1045, Application for Tentative enter the unrecognized gain. Use Part I information.
Refund, or an amended return. Attach an for a loss on the disposition of one or
amended Form 6781 and an amended more positions that are part of a mixed Part II
Schedule D (Form 1040) for the straddle and that are non-section 1256 Use Section A for losses from positions
applicable years. positions if no disposition of a non- that are part of a straddle. Generally, a
section 1256 position in the straddle loss is allowed to the extent it exceeds
On the amended Forms 6781 for the would be a long-term capital gain or loss the unrecognized gain on offsetting
years to which the loss is carried back, and the disposition of one or more positions. The part of the loss not
report the carryback on line 1 of that section 1256 positions in the straddle allowed is treated as if incurred in the
year’s amended Form 6781. Enter “Net would be a capital gain or loss. following year and is allowed to the
section 1256 contracts loss carried back
from” and the tax year in column (a), and • The section 1256 contract part of a same extent. However, a loss from a
enter the amount of the loss carried hedging transaction. The gain or loss on a position established in an identified
back in column (b). hedging transaction is treated as ordinary straddle after October 21, 2004, isn’t
income or loss. See Pub. 550 for details. allowed. Instead, the basis of each
offsetting position in the identified
Specific Instructions Line 5 straddle that has unrecognized gain is
Partnerships enter the amount from line increased by the amount of the
Part I 5 on Form 1065, Schedule K, line 11. unallowed loss multiplied by the
Line 1 S corporations enter the amount from following fraction:
line 5 on Form 1120-S, Schedule K, line The unrecognized gain (if any)
Include on line 1 all capital gains and 10. Lines 6 through 9 in Form 6781, Part on the offsetting position
losses from section 1256 contracts open I, don’t apply to partnerships or S
at the end of your tax year or closed out corporations and are left blank. The total unrecognized gain on
during the year. If you received a Form all positions that offset the loss
1099-B, Proceeds From Broker and Line 6 position in the identified straddle
Barter Exchange Transactions, or See the instructions for box D. For more details, see Pub. 550, chapter 4.
substitute statement, include on line 1
the amount from box 11 of each form. In Line 8 Use Section B for gains from positions
that are part of a straddle.
column (a), write “Form 1099-B” and the If you are not deferring any of this

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Form 6781 (2021) Page 4
Don’t include in Part II a disposition of Line 11a Rate Gain Worksheet in the Instructions
any of the following. Include this amount on Schedule D for Schedule D (Form 1040).
• A position that is part of a hedging (Form 1040), line 4; or on Schedule D Form 1041. If you must complete the
transaction. (Form 1041), line 4. 28% Rate Gain Worksheet in the
• A loss position included in an identified For other returns, enter it in Part I of a Instructions for Schedule D (Form 1041),
straddle established before October 22, Form 8949 with box C checked. Enter include the collectibles gain or (loss)
2004, unless you disposed of all of the “Form 6781, Part II” on line 1 in column from Part II on line 3 of that worksheet.
positions making up the straddle. (a). Enter the (loss) as a negative number Part III
• A loss position included in an identified (in parentheses) in column (h). Leave all
straddle established after October 21, other columns blank. Complete Part III by listing each position
(whether or not part of a straddle) that you
2004. Line 11b held at the end of the tax year (including
• A position that is part of a straddle if all Include this amount on Schedule D any position you are treated as holding
of the positions of the straddle are (Form 1040), line 11; or on Schedule D because it is held by a related party) if the
section 1256 contracts. (Form 1041), line 11. FMV of the position at such time exceeds
Line 10, Column (a) For other returns, enter it in Part II of a your cost or other basis as adjusted.
Enter the property and delivery date and Form 8949 with box F checked. Enter Don’t include positions that are part of
indicate whether the property is a long or “Form 6781, Part II” on line 1 in column an identified straddle or hedging
short position. (a). Enter the (loss) as a negative number transaction, property that is stock in
(in parentheses) in column (h). Leave all trade or inventory, or property subject to
Line 10, Column (d) other columns blank. depreciation used in a trade or business.
For positions closed out or sold, enter Line 13a Don’t complete Part III if you don’t
the closing price or sales price. have a recognized loss on any position
If you are not deferring any of this amount (including section 1256 contracts).
Line 10, Column (e) due to an investment in a QOF, include this
For positions closed out or sold, enter the amount on Schedule D (Form 1040), line 4; Paperwork Reduction Act Notice. We
cost or other basis plus commissions paid. or on Schedule D (Form 1041), line 4. If you ask for the information on this form to
Include nondeductible interest and carrying are deferring any of this amount due to an carry out the Internal Revenue laws of
charges allocable to personal property that investment in a QOF, follow the instructions the United States. You are required to
is part of a straddle. If any part of an in the next paragraph. give us the information. We need it to
unallowed loss from an offsetting position For other returns, enter it in Part I of a ensure that you are complying with these
established in an identified straddle after Form 8949 with box C checked. Enter laws and to allow us to figure and collect
October 21, 2004, increased your basis in “Form 6781, Part II” on line 1 in column the right amount of tax.
the position, also include that amount. See (a). Enter the gain in column (h). Leave all You are not required to provide the
Pub. 550 for details. other columns blank. information requested on a form that is
Line 10, Column (f) Line 13b subject to the Paperwork Reduction Act
unless the form displays a valid OMB
Include in this column any loss not If you are not deferring any of this control number. Books or records
allowed in the prior year to the extent of amount due to an investment in a QOF, relating to a form or its instructions must
the unrecognized gain. include this amount on Schedule D be retained as long as their contents
Line 10, Column (g) (Form 1040), line 11; or on Schedule D may become material in the
(Form 1041), line 11. If you are deferring administration of any Internal Revenue
Enter the unrecognized gain on positions any of this amount due to an investment law. Generally, tax returns and return
offsetting those in columns (a) through (f). in a QOF, follow the instructions in the information are confidential, as required
Include unrecognized gain on any next paragraph. by section 6103.
position you are treated as holding
because it is held by a related party. For other returns, enter it in Part II of a The time needed to complete and file
Figure the amount to enter in this column Form 8949 with box F checked. Enter this form will vary depending on
by subtracting the cost or other basis of “Form 6781, Part II” on line 1 in column individual circumstances. The estimated
the offsetting position from the settlement (a). Enter the gain in column (h). Leave all burden for individual taxpayers filing this
price of that position as of the close of the other columns blank. form is approved under OMB control
last business day of your 2021 tax year. Collectibles gain or (loss). A number 1545-0074 and is included in the
collectibles gain or (loss) is any estimates shown in the instructions for
Lines 11 and 13 long-term gain or deductible long-term their individual income tax return. The
Separate recognized gains and losses loss from the sale or exchange of a estimated burden for all other taxpayers
into short term and long term. Attach a collectible that is a capital asset. who file this form is shown below.
separate statement for each. For Collectibles include works of art, rugs, Recordkeeping . . . . 8 hr., 36 min.
information about holding periods for antiques, metals (such as gold, silver,
straddle positions, see Pub. 550 and and platinum bullion), gems, stamps, Learning about the
Temporary Regulations section coins, alcoholic beverages, and certain law or the form . . . . 1 hr., 57 min.
1.1092(b)-2T. other tangible property. Preparing the form . . 3 hr., 7 min.
Attach separate statements for (a) If any of the gain or loss you reported Copying, assembling,
section 988 contracts that are part of a in Part II is a collectibles gain or (loss) and sending the form
mixed straddle, and (b) any gain on the and you are filing Form 1040, 1040-SR, to the IRS . . . . . . . . 16 min.
disposition or other termination of any or 1041, follow the instructions below for If you have comments concerning the
position held as part of a conversion the form you file. accuracy of these time estimates or
transaction (as defined in section Form 1040 or 1040-SR. If you suggestions for making this form
1258(c)). Identify the net gain or loss and checked “Yes” on line 17 of Schedule D simpler, we would be happy to hear from
report it on Form 4797, line 10. (Form 1040), include the collectibles gain you. See the instructions for the tax
or (loss) from Part II on line 3 of the 28% return with which this form is filed.

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