Form 1099-B is an IRS tax form used by brokerages and barter exchanges to report a customer’s gains and losses to them and the IRS. The information is then used to calculate their capital gains and losses, which are recorded on Schedule D and Form 8949 in the taxpayer’s tax return.
What is Form 1099-B?
Form 1099-B is an Internal Revenue Service (IRS) form issued to taxpayers to report capital gains and losses from brokerages and barter exchanges. It is filled out and sent to clients each January and February for reporting on the following year’s taxes. Clients must transfer the form’s information to Form 8949 to calculate their total gains and losses, with the results reported on their Schedule D. Taxpayers do not file Form 1099-B directly with their tax return. This form is required for any single transactions involving the sale of stocks, commodities, contracts, debt instruments, options, and so forth. Various deductions may apply, and the form also itemizes any federal or state tax withheld. It should be noted that the 1099-B form is not used to file earned income.
IRS Form 1099-B – Who Needs to Fill It Out?
IRS Form 1099-B is used to report capital gains and losses from selling certain assets through brokerages and barter exchanges. The form is sent by the broker or barter exchange to clients and the IRS. Taxpayers don’t have to send the form to the IRS, however the information must be included in the tax return by transferring it to Form 8949 to calculate gains and losses and then recorded on Schedule D. Both forms are then sent to the IRS.
Step-by-Step: Form 1099-B Instructions For Filling Out the Document
Filling out Form 1099-B is an important step in filing taxes. The form itemizes all transactions made during the tax year, including sales of stocks, options, commodities, or other securities. Brokerages or barter exchanges must mail a copy of Form 1099-B to their customers by February 15th, and the form must also be sent to the IRS. When filing your tax return, you must transfer the information from Form 1099-B to Form 8949 and Schedule D to record items such as purchase dates, sale dates, prices, and resulting profits or losses. When filing these forms, be sure to exclude any commissions that may have been paid. Finally, if you don’t receive a 1099-B, make sure to contact the issuer for a replacement copy.
Below, we present a table that will help you understand how to fill out Form 1099-B.
| Information Required for Form 1099-B | Details |
|---|---|
| Transaction Type | Sales of stocks, options, commodities, or other securities |
| Issuer Deadline | Brokerages or barter exchanges must send to customers by February 15th |
| IRS Submission | Form 1099-B must be sent to the IRS |
| Transfer to Form 8949 | Transfer relevant information to Form 8949 |
| Required Information | Purchase dates, sale dates, prices, resulting profits or losses |
| Exclude Commissions | Exclude any commissions paid |
| Replacement Copy | Contact issuer for a replacement if you don’t receive a 1099-B |
Do You Need to File Form 1099-B Each Year?
Yes, brokers and barter exchanges must file a Form 1099-B for every customer to the IRS and send a copy directly to their customers. Each customer must enter the information from the form onto Form 8949 and Schedule D in order to calculate the customer’s preliminary gains and losses for the tax year. Commission payments and other expenses do not apply and are thus excluded from the form. It is important that customers receive a Form 1099-B, as it provides the IRS with a record of the customer’s gains or losses for the year. If a customer does not receive a copy, they should contact the issuer for a replacement copy.
Download the official IRS Form 1099-B PDF
On the official IRS website, you will find a link to download Form 1099-B, Proceeds from Broker and Barter Exchange Transactions. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 1099-B
Sources:
https://www.irs.gov/forms-pubs/about-form-1099-b
https://irs.gov/instructions/i1099b
