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Updated June 15, 2024 Reviewed by Reviewed by Janet Berry-JohnsonJanet Berry-Johnson is a CPA with 10 years of experience in public accounting and writes about income taxes and small business accounting.
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Part of the Series Federal Tax Forms1099 Forms INT–OID
1099 Forms PATR–SA
Form 1099-B, Proceeds From Broker and Barter Exchange Transactions is an Internal Revenue Service (IRS) tax form used by brokerages and barter exchanges to record customers' gains and losses during a tax year.
Individual taxpayers receive the form from their brokers or barter exchange already filled out. Taxpayers transfer the information from a 1099-B to Form 8949 to calculate their preliminary gains and losses. The result is entered onto Schedule D of their tax return.
Brokers must submit a 1099-B form to the IRS and send a copy directly to every customer who sold stocks, options, commodities, or other securities during the tax year. The IRS requires submission of the form to serve as a record of a taxpayer’s gains or losses. Forms are required to be sent to investors by February 15.
For example, let's assume you sold several stocks last year. The proceeds of the sales were $10,000. That figure will be reported to the IRS by the brokerage via a 1099-B form and by you as a report of a taxable capital gain.
The form may also be filed by companies that participate in certain bartering activities with others. For this, the form is used to report changes in capital structure or control of a corporation in which you hold stock.
The broker or barter exchange must mail a copy of a 1099-B form to all clients by Feb. 15 of the year following the tax year. If you don't receive yours, contact the issuer for a replacement copy.
A separate Form 1099-B must be filed by a brokerage or barter exchange for every single transaction involving the sale (including short sales) of stocks, commodities, regulated futures contracts, foreign currency contracts (pursuant to a forward contract or regulated futures contract), forward contracts, debt instruments, options, or securities futures contracts.
Information on Form 1099-B includes:
Commissions for these transactions do not apply and are, therefore, excluded from the form.
As a taxpayer, your capital losses are subtracted from any capital gains and may be used to reduce the taxable income you report. There are limits to the amount of capital loss that can be deducted each tax year. However, if the capital loss exceeds the limit, the difference may be carried over to the following tax year(s).
The form reports the cash received and the fair market value (FMV) of goods or services received or any trade credits received. Taxpayers may be required to report the receipt of gains made during the bartering activity. Reportable gains can be in the form of cash, property, or stock.
A broker or barter exchange should report each transaction (other than regulated futures, foreign currency, or Section 1256 option contracts) on a separate Form 1099-B.
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If you receive a 1099-B, you will need to file Schedule D. This is where you record your gains and losses for the year. Form 8949, Sales and Other Dispositions of Capital Assets is used to record the details of the transactions.
Form 1099-B is used to report capital gains and losses that a taxpayer incurs after selling certain assets through brokerages and barter exchanges. These firms send separate forms for each transaction to both the IRS and the investor.
You must report the information found on Form 1099-B on Schedule D and/or Form 8949 as capital gains or losses.
Issuers include their information and yours on Form 1099-B. It also includes a description of the property sold, the acquisition date, the sale date and price, the original price, and any deductions that apply. Other information includes any federal tax withheld, gains or losses incurred, and state tax withholdings.
While you don't send the actual Form 1099-B to the IRS with your tax return, you must include the information that's on it on Form 8949 and send that along with Schedule D, which is what you'll use to record your totals for all transactions shown on Form 8949.
No. 1099-B reports capital gains and losses. A capital gain or loss results from selling an asset you own, such as a stock, stock option, or bond. Earned income is income you receive from your employment.
Form 1099-B, Proceeds from Broker and Barter Exchange Transactions is the form issued to taxpayers that reports their capital gains and losses for the tax year. It is sent by the broker or barter exchange to clients and the IRS.
Taxpayers don't include Form 1099-B with their tax return but they do transfer the information on it to Form 8949 to calculate their capital gains and losses. These totals are then recorded on Schedule D. Both forms should be included in the tax return sent to the IRS.
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Description Part of the Series Federal Tax Forms1099 Forms INT–OID
1099 Forms PATR–SA
A widow(er)'s exemption is one of several forms of state or federal tax relief available to a surviving spouse in the period following their spouse's death.
A flow-through entity is a legal business entity that passes income to the owners and/or investors of the business. It's sometimes referred to as a disregarded entity.
A qualified higher education expense is a tax credit for the parents of students attending a college or other post-secondary institution.
A filing extension is an exemption made for taxpayers who are unable to file their federal tax return by the regular due date.
Form 1041 is an IRS tax return used by trustees or personal representatives to report income over $600 generated by assets held in an estate or trust.
Form 1099-LTC is used by individual taxpayers to report long-term care benefits to the IRS, including accelerated death benefits.
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