PriorTax | Proceeds from Broker and Barter Exchange Transactions - Form 1099-B

Proceeds from Broker and Barter Exchange Transactions - Form 1099-B

A form 1099-B records all stock transactions and helps you report capital gains or losses to the IRS when you file your return.

Brokers and barter exchanges must file a 1099-B for every person

  • to whom they sell stocks, bonds, commodities, regulated futures contracts, foreign currency contracts, forward contracts, debt instruments, etc. for cash
  • who received cash, stock, or other property from a corporation that gained its stock in an acquisition of control or substantial change in capital structure
  • who exchanged property or services in a barter exchange

  • Every transaction requires its own Form 1099-B, except for those involving regulated futures or foreign currency contracts, which are reported in aggregate.

    Furthermore, even if comprising a single transaction, covered securities with a short-term gain or loss, covered securities with a long-term gain or loss, and noncovered securities all must be reported on separate 1099-Bs.

    Use the 1099-Bs you receive to aid you in filling out Form 8949 [Sales and Other Dispositions of Capital Assets] as well as Schedule D [Capital Gains and Losses].