how to file gains and losses from section 1256 contracts and straddles
part i of form 6781 requires section 1256 investment gains and losses be reported at either the actual price the investments were sold for or the mark to market price established on december 31 part ii of the form requires the losses on the trader s straddles be reported in section a and gains reported in section b part iii is provided for any unrecognized gains on positions held at the end of the tax year but only has to be completed if a loss is recognized on a position 