You will post proceeds and sales as they appear on the 1099-B, but reverse the dates.
Report on Form 1099-B the relevant information about the security sold to open the short sale, with the exceptions described in the following paragraphs.
- In box 1a, report the description and quantity of the security delivered to close the short sale.
- In box 1b, report the acquisition date of the security delivered to close the short sale.
- This was the date you opened the transaction, but it started as a sale.
- In box 1c, report the date the security was delivered to close the short sale.
- This is the date to close the transaction, which ended with a purchase.
- In box 1e, report the adjusted basis of the security delivered to close the short sale.
- In box 2, report whether any gain or loss on the closing of the short sale is short-term or long-term based on the acquisition date of the security delivered to close the short sale. Apply section 1233(d), if applicable.
Please see short sales of securities on page 2: Instructions for Form 1099-B