Form 1099-B Explained

Financial institutions report sales of investment property to the IRS and their clients on Form 1099-B, Proceeds From Broker and Barter Exchange Transactions or a substitute statement. Form 1099-B may show either gross proceeds or net proceeds.

Gross proceeds:

If gross proceeds and selling expenses are separately stated on Form 1099-B, include on Schedule D the gross proceeds amount in column (d) and add the selling expenses to the cost basis in column (e).

Net proceeds:

If only net proceeds are reported on Form 1099-B, report the net amount as the sales price in column (d) of Schedule D.

Do not include selling expenses in column (e).

File your personal and small business taxes (Schedule C)