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, Proceeds From Broker and Barter Exchange Transactions, report the net amount as the sales price in column (d) of Schedule D.

Do not include selling expenses in column (e).