1099 B

(redirected from Form 1099-B)

1099 B

The tax statement used for reporting proceeds resulting from the sale, redemption or liquidation of shares.

1099 B

A form stating a taxpayer's capital gains and losses from security trades. A broker provides each client with a 1099 B form by January 31 each year; the client then uses this to report capital gains and losses from the sale of securities when filling out his/her 1040 to calculate his/her tax liability.
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* New Form 8949, Sales and Other Dispositions of Capital Assets, was introduced with the 2011 tax year, complicating return preparation by requiring a separate form for each of as many as six types of transactions: short term or long term, each divided into whether the transaction was reported on Form 1099-B, and, if it was, whether basis was reported to the IRS.
The first phase of the rules required custodians, broker-dealers, and others to report the cost basis for all equities purchased on or after January 1, 2011, on a new Form 1099-B, Proceeds from Broker and Barter Exchange Transactions.
Form 1099-B. Form 1099-B, Proceeds From Broker and Barter Exchange Transactions for 2011 and later, has been expanded.
For example, the legislative history of the 1997 Act suggests that Form 1099-B (Broker Proceeds) should be employed as the designated form for reporting payments made to attorneys.
The IRS says Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, will be expanded in 2011 to include the cost or other basis of stock and mutual fund shares sold or exchanged during the year, and stockbrokers and mutual fund companies will use Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, to report this information at year end.
CPAs should read the detailed instructions in this announcement for changes in the following forms: 1997 Form 1099-DIV, Dividends and Distributions; 1997 Form 1099-B, Broker and Barter Exchange Transactions; 1996 Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, for 1996-97 fiscal years ending after May 6, 1997; and 1996 schedules K and K-1 for partnerships, S corporations and estates with 1996-97 fiscal years ending after May 6, 1997.
The information is reported on Form 1099-B, Proceeds from Broker and Barter Exchange Transactions.
Currently, matching is only done on Forms 1099-B, Proceeds from Broker and Barter Exchange Transactions, and 1099-S, Proceeds from Real Estate Transactions, but no matching is done for put-and-call stock option transactions conducted through a broker, because they are exempt from Form 1099-B reporting.
Therefore, the active trader must reconcile his monthly position report to his Form 1099-B to mark to market any pending trades that have not settled.
6045 generally requires a broker to report gross proceeds paid to a customer from the sale of securities on Form 1099-B. Under Regs.
This is in contrast to the legislative history, which suggested that Form 1099-B should be used.
Although the legislative history anticipates that gross proceeds reporting will be required on Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, the IRS has decided that gross proceeds will be reportable on Form 1099-MISC, in Box 13, coded "A."