Form 1099-B, Proceeds from Broker and Barter Exchange Transactions
What is Form 1099-B?
Your broker, mutual fund company or other financial institution will send you this form to report the sale of stocks, mutual funds, bonds and other securities. It comes either as a single form, or as part of a consolidated tax statement with other financial and/or tax information, such as dividends and interest received.
Each Form 1099-B reports the details of one sale to the IRS. When reported on a consolidated tax statement, you may see a list of multiple sales, each line item representing a single sale. The form has new boxes so the IRS can collect cost basis information.
New reporting rules require both cost basis and date of acquisition information for each sale. The IRS will now verify that the correct amount of gain or loss is reported, and that the correct dates of acquisition and sale are reported. For securities held prior to 2011, some firms may show information that could be different from your records.
Be sure to verify what is reported on the form with your records. Contact your financial firm if you have questions or your documents show other information about what was reported.
For more about the information reported on Form 1099-B, see the IRS Instructions for Form 1099-B.
If you've gone through the step-by-step interviews, in TurboTax Premier or Home & Business jump directly to the entry screen for Form 1099-B:
- In the TurboTax search box, enter 1099-b and press Enter,
Then click the Jump to 1099-b link in the search results.
- You'll either get the Did You Sell Any Investments in 2014? screen (no asset sales entered yet), or the Summary of All Accounts screen if you've already entered asset sales.
- From there, just follow the onscreen instructions to enter your sales.
See the next section for examples of how your information is shown on some broker statements.
Just like W-2s, 1099-B forms can vary from one firm to another as they may use a substitute or consolidated form. Often the forms will say "1099-B composite" or "1099-B substitute" on the form.
Each brokerage firm's statement differs. To help you enter information in TurboTax, we're providing examples for some of the major brokerage firms:
Generally, cost basis is the original price of an asset, such as stocks, bonds, mutual funds and property. Cost basis includes the purchase price and any associated purchase costs.
For a more detailed review of the cost basis rules, see Cost Basis of Investments.
As a general rule, you should only receive one Form 1099-B from each financial institution. If you receive a second Form 1099-B from a financial institution, take a careful look at both forms and identify the one that has the Corrected box checked in the upper part of the form. Then only enter information from the form with the Corrected box checked in TurboTax, and ignore the other form.
If neither form has the Corrected box checked, take a careful look at the Payer information (including Account number) for both forms to see if they match. If they are a perfect match, or if you are otherwise uncertain how to proceed, contact the financial institution for an explanation before completing your return.