Form 8582 Line 4 GAIN to where?

[KarenMM]

I have a client who has NON- PTP k-1s showing an overall GAIN on worksheet 3, form 8582. The income is from a partnership K-1 using line 11F, described as IRC section 1296 ordinary income. My software is correctly entering it onto the form 8582, worksheet 3, but I think it should go to the 4797, part 2 from there, and it is not. Other than appearing on the 8582, I cannot see that my software did anything with it.
Can anyone verify that it SHOULD go onto the 4797 as ordinary income? If not, where?

[kathyc2]

I believe 1256 income goes to 6781 not 4797.

[New York Enrolled Agent]

I believe 1256 income goes to 6781 not 4797.

There are 2 different code sections being discussed here. 1256 not equal to 1296.

[kathyc2]

There are 2 different code sections being discussed here. 1256 not equal to 1296.

Oops! Coffee maker broke, I'll blame it on lack of caffeine.