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Thread: Green Trader Tax

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#82 (permalink)

03-16-2009, 12:03 PM

abcxyz

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Join Date: Sep 2007

Posts: 5

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Quote:

Originally Posted by GreenTrader Tax

If you never opted out of Section 988 into Section 1256 in a prior (open) tax year, and if you inadvertently and erroneously reported the forex transactions as capital gain or loss (60/40 or otherwise), then you can amend your tax return to fix this. Explain it in the 1040X.

Also, if I amend my 2007 return to report the losses under section 988 instead of section 1256, that will change my loss carryforward (from other stock losses in prior years) on my 2007 return which will affect my 2008 return, so I gather that I have to amend my 2007 return FIRST, and then use that amended return to prepare my 2008 return. Is that correct? And can I send them together (2007 amended and 2008 return) in the same envelope? Thanks for any help.

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