The following diagnostic is generating:
Contract and Straddles (Form 6781) are not allowed for Electronic Filing on the Schedule D.
Solution:
The above diagnostic is specific to California electronic filing of Fiduciary returns. It will trigger for any CA resident Fiduciary return, or for any CA non-resident Fiduciary return that has a Contract and Straddle entry in:
Screen 22, Dispositions, in either the Contracts & Straddles (6781) section of the Misc/Carryovers area, or in the main transaction area in the section Contracts and Straddles (6781)
or
Screen 25, Passthrough K-1, in the Income (Loss) (1-11) section, in the field "Section 1256 gain (loss) (11c)"
Verify that any entries in Screens 22 or 25 are correct, and that they are sourced to the correct state.
If the amounts are supposed to be sourced to CA, then you can e-file the Federal return, but you will have to paper file the California return.
Critical, will prevent e-file transmission
