Where to report 1099-B Line 8 and 10 income???

[Hamacher]

I have a client that has received a 1099-B that has (12,348.08) in box 8 - Profit (loss) Realized on Foreign Exchange Transactions in USD for 2007 and (7,317.33) in box 10 - Unrealized P/L Converted to USD on Foreign Exchange 12/31/2007.

How does this get reported?

Thanks in advance for your help!

[Koss]

Futures

Your client is trading futures contracts in foreign currencies.

They are Section 1256 contracts. Gain/loss may need to be reported on Form 6781.

Mark-to-market rules may or may not be applicable.

Good luck. This is a highly specialized area, like timber or oil wells.

[Hamacher]

Anyone else have experience in Section 1256 contracts?

Can anyone guide me in the right direction? I do not see any discussion of this topic in The Tax Book.

Thanks!

[Bees Knees]

IRS Pub 550, page 39.

http://www.irs.gov/pub/irs-pdf/p550.pdf