Form 1099-B Explained
Learn how to read Form 1099-B in plain English. Explore each important box, understand proceeds and cost basis, try a simple calculation, and test yourself with a quick quiz.
Learn Your 1099-B in 5 Minutes
Follow the guided lesson, explore the fictional form, and test yourself. No document upload is required.
What is Form 1099-B?
A broker generally uses Form 1099-B to report certain sales or exchanges. Your brokerage may place this information inside a consolidated tax statement.
Calculate an unadjusted gain or loss
This demonstrates the basic relationship between proceeds and basis. It does not calculate final tax.
Before wash-sale or other adjustments.
Do you understand the basics?
What Is Form 1099-B?
Form 1099-B is generally used by brokers to report certain investment sales to you and the IRS. You may receive it after selling stocks, ETFs, mutual funds, options, or other securities.
The form may show what you sold, when you bought and sold it, your sale proceeds, your cost basis, and certain adjustments. Form 1099-B does not tell you the final tax you owe.
Proceeds Are Not the Same as Profit
One of the most common mistakes is assuming that the amount in Box 1d — Proceeds is your profit.
For example:
- Sale proceeds: $8,750
- Cost basis: $6,200
- Estimated gain before other adjustments: $2,550
Your gain or loss generally depends on the difference between net proceeds and adjusted cost basis.
What If My Cost Basis Is Blank?
A blank cost basis does not automatically mean your basis is zero.
You may need to review brokerage statements, trade confirmations, transfer records, or other documents to determine the correct amount. Gifted, inherited, transferred, and noncovered securities may require additional research.
Use our Cost Basis Calculator to understand how common adjustments may affect basis.
What Happens After Form 1099-B?
Information reported on Form 1099-B may be used when preparing Form 8949 and Schedule D, depending on the transaction and applicable reporting requirements.
Form 1099-B provides transaction information. It is not itself your completed capital-gains tax calculation.
Frequently Asked Questions
Is Form 1099-B a tax bill?
No. It reports information about certain investment transactions. It does not calculate your final tax.
Is Box 1d my profit?
No. Box 1d generally shows proceeds. Your gain or loss also depends on cost basis and applicable adjustments.
Why is my cost basis missing?
The broker may not have been required or able to report it. You may need to determine the correct basis from your own records.
What is a wash sale?
A wash sale may occur when you sell an investment at a loss and acquire substantially identical property within the applicable period. Special rules can delay the deduction of that loss.
Does this guide replace tax advice?
No. This page is for general educational purposes and uses simplified fictional examples.
Continue Learning
Use our free calculators to understand how proceeds, cost basis, and capital gains work together.
Related Guides
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