1099-B – Proceeds From Broker and Barter Exchange

Form 1099-B is used to report proceeds from broker and barter exchange transactions.

This form is used to report the sale of stocks, bonds, commodities, and other securities.

The 1099-B must be filed with the IRS by the broker or barter exchange.

The 1099-B must also be sent to the taxpayer by February 15.

The 1099-B should be used to report the following information:

  • The name, address, and TIN of the broker or barter exchange
  • The name and address of the taxpayer
  • The date of the transaction
  • The proceeds from the transaction
  • The basis of the security (if known)
  • Whether or not the transaction is a short-term or long-term capital gain/loss

If the 1099-B is for a wash sale, then the broker or barter exchange must indicate this on the form.

A wash sale occurs when a security is sold and then purchased again within 30 days.

The 1099-B must also be sent to the taxpayer if the basis of the security is not known.

The 1099-B should not be used to report the following information:

  • Interest income
  • Dividend income
  • Mutual fund distributions
  • Real estate transactions
  • Sales of property held for personal use (e.g., your home)
  • Transactions that are not reportable on Form 1099-B (e.g. short sales, options, etc.)

If you have questions about Form 1099-B, please contact the broker or barter exchange that issued the form. You can also contact the IRS for more information.

 

Who Files Form 1099-B: Proceeds From Broker and Barter Exchange?

The 1099-B must be filed with the IRS by the broker or barter exchange. The 1099-B must also be sent to the taxpayer by February 15.

Penalties

If you don’t file a 1099-B when you’re supposed to, you may be subject to a penalty.

The penalty for not filing a 1099-B is $50 per form, with a maximum penalty of $536,000 per year ($1,609,000 for small businesses and exceptions). If you intentionally don’t file a 1099-B, the penalty increases to $100 per form, with a maximum penalty of $1,609,000 per year.

Other Forms Relevant to Form 1099-B

A Schedule D is required if you file a Form 1099-B. The Schedule D is what’s used to record your gains and losses for the calendar year.

Form 8949: Sales and Other Dispositions of Capital Assets is used to record the details of the transactions.

Form 1099-B – FAQs

What is Form 1099-B used for?

Form 1099-B is used to report proceeds from broker and barter exchange transactions. This form is used to report the sale of various assets like stocks, bonds, commodities, and other types of securities.

Who needs to file Form 1099-B?

The 1099-B must be filed with the IRS by the broker or barter exchange.

The 1099-B must also be sent to the taxpayer by February 15.

When is Form 1099-B due?

1099-B forms must be mailed to recipients by February 15, and e-filed with the IRS by March 31 each year.

What are the penalties for not filing a 1099-B?

If you don’t file a 1099-B when you’re supposed to, you may be subject to a penalty.

The penalty for not filing a 1099-B is $50 per form, with a maximum penalty of $536,000 per year ($1,609,000 for small businesses and exceptions).

If you intentionally don’t file a 1099-B, the penalty increases to $100 per form, with a maximum penalty of $1,609,000 per year.

What other forms are relevant to Form 1099-B?

A Schedule D is required if you file a Form 1099-B. The Schedule D is what’s used to record your gains and losses for the calendar year.

Form 8949: Sales and Other Dispositions of Capital Assets is used to record the details of the transactions.

 

Conclusion – Form 1099-B

Form 1099-B is used to report proceeds from broker and barter exchange transactions. This form is used to report the sale of various types of securities.

The 1099-B must be filed with the IRS by the broker or barter exchange. The 1099-B must also be sent to the taxpayer by February 15th. If you don’t file a 1099-B when you’re supposed to, you may be subject to a penalty.

Other relevant forms include Schedule D and Form 8949. Schedule D is used to record your gains and losses for the calendar year, while Form 8949 is used to record the details of the transactions.

This article is for informational purposes only and is not intended to be tax or legal advice. Please consult your tax advisor or attorney for specific advice.

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