1256 contracts carry back

[Neetu Dsouza]

Here is my situation -

I made significant losses on 1256 contracts this year and here is my sample scenario.

2022 year
- Long term capital gains - 24,000
- 1256 contracts losses - 140,000

2021 year


- long term gain - 110,000
-- 1256 contract losses - 28000

I had paid taxes on the long term gain last year and wanted to see if you could possibly help me understand this carry back rule and if in any way I would be eligible for the carry back.

Here it what it says on the IRS site -

The amount you can carry back to any prior year is limited to the smaller of:
• The gain, if any, that you would report on line 16 of Schedule D (Form 1040) for that carryback year if only gains and losses from section 1256 contracts were taken into account; or
• The gain, if any, reported on line 16 of Schedule D (Form 1040) for that carryback year.

I didn't have gain on 1256 contracts but did have overall gain on schedule D. Will I be able to carry back the losses even though I didn't have 1256 contracts gains?

Thanks for your help!!