Form 1099-B

The Form 1099-B is a tax form issued by brokers reporting sales and redemptions of stocks, bonds, mutual funds, and other securities during the year. The form shows the proceeds from each sale and the cost basis (which your broker calculates based on your basis method). You use this information to calculate capital gains and report them on Schedule D or Form 8949.

What goes on 1099-B

The form lists each sale transaction with:

• Description: Security sold (e.g., “Apple Inc. Class A Common Stock”)
• Proceeds: Total sale amount (price × shares)
• Cost basis: Broker-calculated purchase cost
• Gain or loss: Proceeds minus cost basis
• Holding period: Whether the holding period is short-term (under 1 year) or long-term (over 1 year)

Cost basis reporting

For securities acquired after 2011, brokers are required to report cost basis on 1099-B. This is calculated using your basis method:

• If you specified specific identification, the broker uses that
• If you did not specify, the broker defaults to FIFO
• For mutual funds, average cost is often the default

The broker’s calculation should match your records. If it does not, you may need to file an amended 1099-B or report the correction on your return.

Wash-sale adjustments

If your broker detects a wash-sale (sale and repurchase within 30 days), the form will show the disallowed loss and the adjustment to cost basis. The wash-sale loss is added to the new cost basis, deferring the deduction.

Multiple 1099-Bs

If you have securities accounts at multiple brokers, you will receive multiple 1099-B forms. You must aggregate all gains and losses on a single Schedule D or Form 8949.

Reporting on your tax return

You use the 1099-B information to complete Form 8949 (if you have capital gains and losses) and Schedule D (summary of capital gains and losses). Your tax software typically reads 1099-B data electronically and auto-populates Form 8949.

Non-covered securities

Securities acquired before 2012 are often “non-covered” securities. Your broker may not have cost basis information for these. You may need to provide your own cost basis documentation (or reconstruct it from old confirmations).

For non-covered securities, 1099-B may show only proceeds, not cost basis. You enter the cost basis manually on Form 8949.

“B” transactions and options

If you sold call options or put options, these may also appear on 1099-B. Reporting options is complex; the gain or loss depends on whether you closed the position, exercised, or let it expire. Consult a tax professional if you have option transactions.

ETF in-kind redemptions

Some ETFs allow in-kind redemptions (redemption in securities instead of cash). These may not generate a 1099-B because there was no sale. You may still have a capital gain on the redeemed securities, but you need to calculate it yourself.

Timing: February 15 deadline

Your broker must issue 1099-B by February 15. You then have time to gather all information before filing by April 15 (or later with an extension). If your broker is late, you can file with an estimate and amend later.

Corrections and amended forms

If your broker issued a 1099-B with errors, they will issue a corrected form (usually labeled “Corrected Form 1099-B”). You should use the corrected version when filing your return.

Reconciling 1099-B with your records

Best practice: reconcile the 1099-B against your broker statements and trade confirmations. Check:

• Proceeds amounts match
• Cost basis is correct (or matches your basis method election)
• Holding period is correctly designated
• Wash-sale adjustments are accurate

See also