Form 1099-B is the statement your broker sends after you sell stock, bonds, funds or other securities. It shows what you sold, what you received and, for many securities, what you paid. It does not tell you how much tax you owe: that is worked out on Form 8949 and Schedule D.
This guide explains each box, the difference between covered and noncovered securities, and how to get from the form to a gain or loss, with a worked example. It follows the IRS form instructions and the Form 8949 instructions.
| Box | What it shows | Why it matters |
|---|---|---|
| Box 1a | A brief description of the item sold | Matches the sale to your records |
| Box 1b | Date acquired (may be blank if box 5 is checked or the securities were bought on varied dates) | Sets short or long term |
| Box 1c | The trade date of the sale or exchange | The date you sold |
| Box 1d | Cash proceeds, reduced by commissions or transfer taxes | The sales price you report |
| Box 1e | The cost or other basis of the securities sold | Subtracted from proceeds to find gain or loss |
| Box 1g | The amount of nondeductible loss in a wash sale | A loss that is not deductible because of the wash sale rules |
| Box 2 | Whether the gain or loss is short term or long term | Decides which part of Form 8949 it goes on |
| Box 4 | Backup withholding | Included on your return as tax withheld |
| Box 5 | Checked if the securities were noncovered | Basis and some other boxes may be blank |
| Box 12 | Checked if the basis in box 1e has been reported to the IRS | Affects which Form 8949 box you check |
Brokers report your cost basis to the IRS only for covered securities. If Box 5 is checked, the securities sold were noncovered, and boxes 1b, 1e, 1f, 1g and 2 may be blank. Generally, a noncovered security means stock purchased before 2011, stock in most mutual funds purchased before 2012, stock purchased in or transferred to a dividend reinvestment plan before 2012, debt acquired before 2014, options granted or acquired before 2014 or securities futures contracts executed before 2014. For these you must supply the basis from your own records.
The 1099-B tells you to see the instructions for your Schedule D (Form 1040) and/or Form 8949. Form 8949 allows you and the IRS to reconcile the amounts reported on Form 1099-B with the amounts you report on your return, and you always report the proceeds shown on the form. In some cases you do not need Form 8949 and can report totals directly on Schedule D; the conditions are covered in our Form 8949 guide.
| Item | Where it appears | Amount |
|---|---|---|
| Proceeds | Box 1d | $3,500 |
| Cost basis | Box 1e | $2,000 |
| Gain | Proceeds minus basis | $1,500 |
If you held the shares for more than one year before selling, the gain is long term; if you held them one year or less, it is short term. For covered securities the 1099-B shows which in Box 2; if Box 5 is checked, Box 2 may be blank and you work it out from your own purchase and sale dates. The gain is added to your income; see our capital gains brackets guide for the rates. A wash sale, where a loss is disallowed, appears in Box 1g; see our wash sale guide.
The form says it is important tax information being furnished to the IRS, so the IRS has a copy. If the proceeds, basis or description do not match your records, contact your broker for a corrected form, and keep your own purchase records: for noncovered securities you must supply the basis yourself.
IRS Form 1099-B and instructions, IRS Instructions for Form 8949 (2025 edition, the latest published as of October 2026), IRS Topic no. 409, Capital gains and losses.