IRS Form 1099-B – IRS Forms, Instructions, Pubs 2026 – If you’ve sold stocks, bonds, or other investments through a broker, or participated in barter exchanges, you’ve likely encountered IRS Form 1099-B. This essential tax document reports proceeds from these transactions, helping you calculate capital gains or losses for your tax return. In this comprehensive guide, we’ll break down what Form 1099-B is, who needs it, how to read it, and key updates for the 2025 tax year. Whether you’re an investor, trader, or tax professional, understanding Form 1099-B can simplify your filing process and ensure compliance with IRS rules.
What Is IRS Form 1099-B?
IRS Form 1099-B, titled “Proceeds From Broker and Barter Exchange Transactions,” is a tax form used to report the sale or exchange of certain assets through brokers or barter networks. It details the proceeds from transactions involving stocks, bonds, commodities, options, futures contracts, and more. The form also covers barter exchanges, where goods or services are traded without cash.
Brokers and barter exchanges issue this form to report gains or losses to both the recipient and the IRS. Taxpayers use the information to complete Form 8949 (Sales and Other Dispositions of Capital Assets) and Schedule D (Capital Gains and Losses) on their federal tax return. Without it, calculating your tax liability on investment sales could be challenging.
For example, if you sold 100 shares of a stock through your brokerage, the proceeds (sale price minus commissions) would appear on Form 1099-B, along with your cost basis if available.
Here’s a sample of what Form 1099-B looks like for the 2025 tax year:
Who Must File Form 1099-B and Who Receives It?
Who Files It?
Brokers, including those who facilitate sales of stocks, commodities, regulated futures contracts, foreign currency contracts, debt instruments, options, and securities futures contracts, must file Form 1099-B. Barter exchanges—networks where members trade goods or services—also file this form for non-corporate members with transactions.
Additionally, Qualified Opportunity Funds (QOFs) report dispositions of interests on Form 1099-B, even for gifts or inheritances. Exemptions exist for certain entities like charities, IRAs, or U.S. government agencies.
Who Receives It?
You’ll receive Form 1099-B if:
- You sold investments through a broker.
- You participated in a barter exchange and received property or services.
- You received cash, stock, or property from a corporate acquisition or change in capital structure.
Both U.S. and foreign persons may receive it, but reporting focuses on taxable events. If you have multiple accounts, expect separate forms or consolidated statements.
Understanding the Boxes on Form 1099-B
Form 1099-B contains several boxes that detail your transaction. Here’s a breakdown based on the official form layout:
| Box Number | Description | Purpose |
|---|---|---|
| 1a | Description of property | Details the asset sold (e.g., “100 sh. XYZ Co.”) or bartered item. |
| 1b | Date acquired | When you bought the asset; blank if unknown or noncovered. |
| 1c | Date sold or disposed | Trade date of the sale or exchange. |
| 1d | Proceeds | Gross proceeds from the sale (cash or fair market value), minus commissions. |
| 1e | Cost or other basis | Your adjusted cost basis; blank for noncovered securities. |
| 1f | Accrued market discount | Amount of market discount included in income. |
| 1g | Wash sale loss disallowed | Nondeductible loss from a wash sale. |
| 2 | Type of gain or loss | Checks short-term, long-term, or ordinary. |
| 3 | Proceeds from | Checks if from collectibles or QOF. |
| 4 | Federal income tax withheld | Backup withholding if no TIN provided. |
| 5 | Noncovered security | Checked if basis isn’t reported to IRS (e.g., pre-2011 stocks). |
| 6 | Reported to IRS | Gross or net proceeds. |
| 7 | Loss not allowed | Checked for certain corporate transactions. |
| 8-11 | Contract-related fields | For futures, options, or contracts: realized/unrealized profits/losses. |
| 12 | Basis reported to IRS | Checked if cost basis was sent to IRS. |
| 13 | Bartering | Gross amount from barter exchanges. |
| 14-16 | State information | State name, ID, and withheld tax (optional). |
Payer and recipient details, including TINs and addresses, appear at the top. For 2025, addresses are now in separate fields for street, city, state, ZIP, and country.
How to Report Form 1099-B on Your Tax Return?
Use the data from Form 1099-B to report capital gains or losses:
- Transfer details to Form 8949, separating short-term (held ≤1 year) and long-term (held >1 year) transactions.
- Calculate gain/loss: Proceeds (Box 1d) minus basis (Box 1e), adjusted for wash sales (Box 1g) or market discount (Box 1f).
- Summarize on Schedule D and carry to Form 1040.
For barter income, report on Schedule C if business-related, or Schedule 1 for personal. Ordinary income (Box 2 checked) may have different tax treatment.
If basis isn’t reported (Box 5 checked), provide your own records to avoid IRS mismatches.
Filing Deadlines and Penalties for Form 1099-B
Deadlines
- Furnish Copy B to recipients by February 17, 2026 (for 2025 transactions).
- File with IRS by February 28, 2026 (paper) or March 31, 2026 (electronic).
- Electronic filing required for 10+ returns.
Penalties
Failure to file or furnish can result in penalties from $50 to $630 per form, depending on lateness and intent. No penalties for blank basis on noncovered securities if Box 5 is checked.
Recent Changes to Form 1099-B for the 2025 Tax Year
For tax year 2025 (filed in 2026):
- Address Fields Update: Payer and recipient addresses are now separated into individual boxes (street, city, state, etc.) for easier processing.
- Digital Assets Reporting: Many digital asset sales now use new Form 1099-DA instead of 1099-B, except for certain contracts or securities.
- Electronic Filing Threshold: Must e-file if submitting 10+ information returns.
- Other Notes: No major threshold changes for 1099-B itself, but related forms like 1099-K have adjusted reporting limits.
Always check IRS.gov for the latest updates, as legislation can impact forms.
Frequently Asked Questions About Form 1099-B
1. What if I don’t receive my 1099-B?
Contact your broker or exchange. You must still report transactions using your records.
2. How does Form 1099-B differ from 1099-DIV or 1099-INT?
1099-B focuses on sales proceeds, while 1099-DIV reports dividends and 1099-INT reports interest.
3. Can I file Form 1099-B electronically?
Yes, and it’s required for high volumes. Use IRS FIRE or IRIS systems.
4. What about cryptocurrency or NFTs?
Starting 2025, most digital assets use Form 1099-DA, but some may still fall under 1099-B if classified as securities.
Understanding IRS Form 1099-B is crucial for accurate tax reporting on investments and barters. By using the details provided and consulting official IRS resources, you can avoid common pitfalls and ensure a smooth filing season. If you’re unsure, consider consulting a tax professional.