Broker sale statement
Form 1099-B Guide
Decode Form 1099-B boxes, check whether basis was reported to the IRS, and carry each sale through Form 8949 and Schedule D.
1099-B
Proceeds from Broker and Barter Exchange Transactions
Decision point
Use this guide when
- A broker reported a sale of stock, an ETF, a bond, an option, a commodity, or certain digital assets.
- You need to know whether the broker reported cost basis to the IRS.
- Dates, proceeds, basis, or gain/loss information on the statement does not match your records.
Read the document
Key boxes, columns, and parts
| Location | Label | What it means | Next destination |
|---|---|---|---|
| Box 1a | Description of property | Identifies the security, asset, or transaction sold. | Form 8949 column (a) |
| Box 1b | Date acquired | The acquisition date used to determine the holding period. | Form 8949 column (b) |
| Box 1c | Date sold or disposed | The trade or disposition date reported by the broker. | Form 8949 column (c) |
| Box 1d | Proceeds | Gross cash proceeds from the sale, subject to the reporting convention shown on the form. | Form 8949 column (d) |
| Box 1e | Cost or other basis | Broker-reported basis. Verify it against purchase records, reinvested distributions, adjustments, and inherited or gifted-property rules. | Form 8949 column (e) |
| Box 1f | Accrued market discount | Market discount reported for certain debt instruments. | May require an adjustment and ordinary-income treatment |
| Box 2 | Short-term or long-term | Shows the broker's holding-period classification or ordinary treatment where applicable. | Determines Form 8949 Part I or Part II |
| Box 4 | Federal income tax withheld | Backup withholding taken from the transaction. | Claim with other federal withholding on Form 1040 |
| Box 5 | Noncovered security | Indicates that the broker was not required to report basis to the IRS. | Usually Form 8949 box B or E, depending on holding period |
| Box 12 | Basis reported to IRS | Shows whether basis for a covered security was reported to the IRS. | Helps select Form 8949 box A/D versus B/E |
Follow the amounts
From source document to tax return
-
1. Reconcile the sale
Match description, dates, proceeds, basis, and withholding to the broker statement and your records.
-
2. Choose the Form 8949 category
Separate short-term from long-term transactions and identify whether basis was reported to the IRS. Open the related tool →
-
3. Enter corrections or adjustments
Use Form 8949 adjustment columns and the IRS code that applies; do not silently overwrite a broker-reported amount.
-
4. Carry subtotals to Schedule D
Combine Form 8949 subtotals with other capital-gain items on Schedule D. Open the related tool →
-
5. Estimate the federal result
Use the capital gains calculator after separating short-term and long-term amounts. Open the related tool →
Before filing
Four checks that prevent common errors
- Keep trade confirmations and statements that support basis and acquisition dates.
- Check for wash-sale adjustments, return of capital, inherited or gifted basis, and reinvested distributions.
- Do not assume a blank basis box means the asset had zero basis.
- Reconcile federal withholding in Box 4 with the withholding claimed on the return.
Continue the workflow
Related guides and calculators
Common questions
Form 1099-B FAQ
Does Form 1099-B show the tax I owe?
No. It reports transaction information such as proceeds and, for some securities, basis. Gain or loss depends on the correct basis, adjustments, holding period, and the rest of your return.
What if cost basis is missing?
Use your records to determine basis under the applicable IRS rules. A missing broker basis does not automatically make the basis zero.
Do all 1099-B transactions go on Form 8949?
Many do. The Schedule D instructions allow limited aggregate reporting without Form 8949 when the stated conditions are met, but transactions needing adjustments generally belong on Form 8949.