Question

1256 Futures contracts carry back.....or not?

Forum|Forum|1 year ago
March 25, 2025
1 reply
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Last tax year (2023) and this tax year (2024) I have been day-trading futures contracts. Last year I made about $5,000, while this year I lost about $6,000. TTX says that I can (must?) carry back what I lost from 2024 to (in my case) 2023. I have several questions:

(1) Can I (must I) carry back to 2023 $5,000, and therefore amend that tax return with form 1045?

(2) Since I would like to avoid the process of amending my 2023 tax return, could I just enter as carry back a small amount ($0.01). I am asking because TTX seems to require entering a carry back amount larger than 0.

(3) If I just need to submit an amended 2023 return, do I need to install again my desktop TTX 2023 version? Would that work? And what about amending my 2023 State taxes? Would TTX also handle them?

Thank you for the help!

fanfare

You do not have to do any carryback That is totally your choice.

Since the carry backs is a complicated process, that involves amending two prior returns, you should not do it unless it is strongly to your advantage

@Massimo59