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If I have $0 in box 1e on a 1099-B, do I need to report proceeds in box 1d as income?

Forum|Forum|4 months ago
January 12, 2026
2 replies
0 views

I received a letter from the IRS stating that my broker reported stock proceeds and the IRS used box 1e on my 1099-B as the cost basis, which is $0. However, the letter says the proceeds from the sale are what's actually reported. Is the $0 in box 1e the correct amount to report for taxable income?

TurboTax Online

Best answer by DawnC

Yes, the proceeds are taxable income. Box 1e is your basis, which reduces the amount of income you will pay tax on. Cost basis is the original purchase cost of an asset (such as stocks, bonds, or property), plus any adjustments that result from transactions over the period you own the asset.

The basis is what you originally paid for it. How did you get it? If you can't determine the cost basis, you will have to use $0, which generates the most tax. If you need help determining the basis, please see the article linked below.

How to find a stock's cost basis

Level 15

Box 1e is what you originally paid for the asset.

DawnCAnswer

Level 15

Yes, the proceeds are taxable income. Box 1e is your basis, which reduces the amount of income you will pay tax on. Cost basis is the original purchase cost of an asset (such as stocks, bonds, or property), plus any adjustments that result from transactions over the period you own the asset.

The basis is what you originally paid for it. How did you get it? If you can't determine the cost basis, you will have to use $0, which generates the most tax. If you need help determining the basis, please see the article linked below.

How to find a stock's cost basis

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