We are cunrrently preparing both 2005 (never filed) and 2006 tax returns for a single client who trades commodities.
In 2005 she had a net profit on her 1099-B on her futures trading so we listed the net profit on Form 6781 (which evenually splits 60/30 Long-Term vs. Short-Term on Schedule D).
However, in 2006 she had a small futures loss in the same account. I believe normally you can carry the futures loss back three years.
If so, since the 2005 returns have not yet been filed can we net the 2006 loss against the 2005 gain or do we need to file the 2005 return w/o loss then file an amended 2005 return for the loss carry-back?
Any other suggestions / advice - being that the 2006 loss in only $320?
Thank you VERY much in advance for your assistance in this matter.
In 2005 she had a net profit on her 1099-B on her futures trading so we listed the net profit on Form 6781 (which evenually splits 60/30 Long-Term vs. Short-Term on Schedule D).
However, in 2006 she had a small futures loss in the same account. I believe normally you can carry the futures loss back three years.
If so, since the 2005 returns have not yet been filed can we net the 2006 loss against the 2005 gain or do we need to file the 2005 return w/o loss then file an amended 2005 return for the loss carry-back?
Any other suggestions / advice - being that the 2006 loss in only $320?
Thank you VERY much in advance for your assistance in this matter.