When reporting a Certificate of Deposit (CD) on a 1099-B form, it may be from a brokered CD. This type of CD is purchased through a brokerage firm rather than a traditional bank.
Here's a summary of how it may work:
- Interest Earned: The interest earned from the CD is normally reported on a 1099-INT form.
- Capital Gains and Losses: Any capital gains or losses from the sale or maturity of the CD might be reported on a 1099-B form.
- On the 1099-B form, a brokered CD should generally be classified as a bond or debt instrument. The description might say something like "Brokered CD in Box 1a.
For more detailed information, you can refer to the IRS Instructions for Form 1099-B - see instructions for Box 1a.
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