The 1099-B is an IRS form used to report proceeds from broker and barter exchange transactions and covered securities transactions. Day traders use this form to report their gains and losses to the IRS. The broker or barter exchange must mail a copy of a 1099-B form to all clients by Feb. 15 of the year following the tax year. Contact the issuer for a replacement copy if you don’t receive yours.
What information is on Form 1099-B?
Form 1099-B reports the gross proceeds from broker and barter exchange transactions and covered securities transactions. The IRS uses this information to calculate your taxes owed.
The issuer must report the following information on the 1099-B:
- Name, address, and taxpayer identification number of the broker or barter exchange
- Name and address of the person for whom the broker or barter exchange acted as an agent
- Date of acquisition
- Date of sale or exchange
- Proceeds from the sale (in US dollars)
- Cost or another basis (in US dollars)
- Code(s) to indicate whether gain or loss is long-term or short-term
Why is the 1099-B Used?
The IRS uses the 1099-B to determine if the taxpayer paid the correct amount of taxes based on the proceeds from the sale of securities. Taxpayers also use this form to calculate their gain or loss from the sale of securities. The cost basis information reported on the 1099-B is used to determine if there is a capital gain or loss when the security is sold.
How do I file Form 1099-B?
You can file Form 1099-B electronically or by paper. To file electronically, you must use software that the IRS approves. You can find a list of approved software on the IRS website. If you choose to file by paper, you must mail your Form 1099-B to the address listed on the form.
How TraderFyles Can Help
TraderFyles is the most advanced, user-friendly tax software for taxpayers with a 1099-B. Drag and drop your 1099-B into 1099-B Match and generate the Form 8949 & Schedule D, integrate with TurboTax, or create a detailed Transaction Report—everything you will need to report your gains and losses to the IRS. Sign up for today for free!
Bottom Line
The 1099-B is an important form for day traders because it reports your gains and losses to the IRS. This information is used to calculate your taxes owed. You can file Form 1099-B electronically or by paper. If you have any questions about how to file this form, you should consult with a tax professional.
