Form 1099-B
Proceeds from Broker and Barter Exchange Transactions
Proceeds from Broker and Barter Exchange Transactions
Form 1099-B, “Proceeds from Broker and Barter Exchange Transactions,” is a tax form used by brokers or barter exchanges to report the sale or exchange of securities, commodities, or other property to their customers and the Internal Revenue Service (IRS). The form provides information about the sale or trade of various assets that may be necessary for a taxpayer to report on their income tax return. This form is part of the 1099 series, which are used to report various types of income that individuals may receive throughout the year other than salary from an employer. It is an essential document for tax reporting purposes, ensuring that interest income is correctly reported to the IRS.
Per the IRS, a broker or barter exchange must file this form for each person:
- For whom it sold stocks, commodities, regulated futures contracts, foreign currency contracts, forward contracts, debt instruments, options, securities futures contracts, etc., for cash;
- Who received cash, stock, or other property from a corporation that the broker knows or has reason to know has had its stock acquired in an acquisition of control or had a substantial change in capital structure reportable on Form 8806; or
- Who exchanged property or services through a barter exchange.