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Carrybacks and carrying forward

Carry back a net section 1256 contract loss

UltraTax CS calculates the net section 1256 contract loss on Form 6781. When
Form 6781 box D, Net section 1256 contracts loss
 election is marked and line 5 has an amount, UltraTax CS marks the Section 1256 contracts loss 3-year carryback period to Form 1045 field on this screen. The loss amount from Form 6781, line 6, will show on Form 1045, line 1c, Net section 1256 contracts loss.
Do the following to complete the Computation of Decrease in Tax section on this screen.
  1. Obtain copies of the tax original returns or, if applicable, the amended tax returns, for the tax years involved in the carryback period you determined on the
    1045
     screen.
  2. Enter the information from these returns in the
    Before carryback
     fields of the respective years being carried back.
  3. Open UltraTax CS of the 3rd preceding year of the carryback. Using the
    6781
     screen, follow the Form 6198 instructions about the carryback on where to enter the net section 1256 contract loss.
  4. Use the refigured return to enter in the amounts in the After carryback column.
  5. If any losses aren't absorbed in the earliest carryback period, refigure the next period using the next year of UltraTax CS. Continue until you've completed the 1st preceding year.
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