Option Contract 1256 Reporting and Charging Fees

Forum|Forum|11 months ago
April 15, 2025
1 reply
0 views

This is the first time I am dealing with option contracts trading activity reports in TurboTax Premier. I started option trading last year.

Can anyone provide guidance or explain how to report the information from my broker to the information requested by TurboTax or on IRS Form 6781?

Second, I would like to report the transaction fees for a stock transaction, as seen at the bottom of the attached file. I believe there is a place for this in TurboTax.

Mahalo.

KauWai83Author

Sorry. Here's the attachment.

DavidD66

Your Options Subject to Section 1256 Reporting are not reported with the 1099-B transactions. They are subject to different rules and reported in a different section. To enter your Section 1256 Options in TurboTax Online, From the Tax Home:

Click on Income
Scroll down to "Less Common Investments and Savings"
Next to "Contracts and Straddles" select "Start"
Answer "Yes" to "Any Straddles or Section 1256 Contracts?"
On the next screen, it is highly unlikely that you need to make any elections, so just click "Continue"
On the screen with "Contracts and Straddles", more than likely you only need to select Section 1256 contracts... You may want to read the IRS instructions for Form 6781, Gains and Losses from Section 1256 Contracts and Straddles
Select "I'll report the totals from each broker or account.
Enter the information to report your your profits and losses from your Section 1256 Options transactions.

The fees on your statement are not deductible. Any fees you pay to buy, sell, or hold an asset or to collect interest or dividends are not tax deductible. This includes brokerage or transaction fees, advisor fees, custodial fees, accounting costs, and fund operating expenses.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"