Form 1099-B
Definition
An IRS tax form issued by brokerages reporting proceeds from the sale of stocks, bonds, commodities, and other securities during the tax year.
Form 1099-B is the tax document your brokerage sends after each tax year, reporting every sale or disposition of securities in your account. It includes the date of sale, proceeds, cost basis (if known), and whether the gain or loss is short-term or long-term.
Starting in tax year 2025, crypto exchanges are also required to issue 1099 forms for digital asset transactions, significantly changing how crypto gains are reported. Previously, many crypto investors had to self-report all transactions.
The 1099-B feeds directly into Schedule D and Form 8949 on your tax return. If your brokerage reports cost basis, you can often summarize the totals. If cost basis is not reported (common for older purchases or crypto), you must report each transaction individually on Form 8949.
Common issues with 1099-B forms include incorrect cost basis for transferred securities, missing adjustments for wash sales, and discrepancies between what the broker reports and your actual basis. If you transferred shares from another broker, the receiving broker may not have your original cost basis.
Having multiple 1099-Bs from different brokerages and exchanges is normal for diversified investors. Consolidating all these forms into a single tax picture is one of the main challenges of investment tax reporting, especially when wash sales span across accounts.
Where this appears in Clarity
Clarity automatically tracks and calculates these concepts across your connected accounts.
Related Terms
Frequently Asked Questions
What do I do if my 1099-B has wrong cost basis?
You report the correct cost basis on Form 8949, even if it differs from the 1099-B. Keep records of your original purchases to support your reported basis. The IRS will receive the broker's reported amounts, so discrepancies may need documentation.
Do crypto exchanges issue 1099-B forms?
Starting in 2025, centralized crypto exchanges are required to issue tax forms reporting gross proceeds from digital asset sales. However, cost basis reporting for crypto may be phased in over subsequent years, and DeFi transactions may not be covered.