What a 1099-B Form Reports About Your Investment Sales

A 1099-B reports the sale price and cost basis of stocks, bonds, mutual funds, and other securities you sold during the year

Your brokerage or investment firm sends you a 1099-B when you sell investments. The form lists what you sold, when you sold it, how much you received, and what you originally paid for it. The IRS gets a copy too, so the numbers on your 1099-B should match what you report on your tax return.

You receive a 1099-B only if you sold something — not if you bought, held, or received dividends. If you own stocks but never sold them, you won't get a 1099-B for that year. If you sold mutual funds, ETFs, individual stocks, bonds, or cryptocurrency through a brokerage account, you'll get one.

The form arrives by January 31 of the year after the sale. If you sold investments in 2024, expect your 1099-B in January 2025. Some brokerages deliver it electronically through your account portal; others mail it.

Key Takeaways

• A 1099-B shows the proceeds from each investment sale and your original purchase price, which you need to calculate your gain or loss.
• The form covers stocks, bonds, mutual funds, ETFs, and other securities sold through a brokerage account during the tax year.
• You receive a 1099-B only for sales, not for holdings, dividends, or interest earned on cash balances.
• The IRS receives the same 1099-B data your brokerage sends to you, so mismatches between the form and your tax return can trigger an audit notice.

What information appears on a 1099-B

The 1099-B lists each sale separately. For each transaction, you'll see the description of what was sold (for example, "100 shares of XYZ Corp"), the date you sold it, the proceeds (the money you received), and the cost basis (what you paid for it originally). Some brokerages also include the date you bought it.

Box 1a shows the gross proceeds — the total sale price before any fees or taxes. Box 1b shows the adjusted proceeds if the brokerage deducted fees. Boxes 1c and 1d show your cost basis and whether it was reported to the IRS as "covered" or "uncovered." Covered basis means the brokerage tracked your purchase price; uncovered means you need to provide that information yourself.

The form also indicates the type of gain or loss — short-term (held one year or less) or long-term (held more than one year). This matters because long-term gains are taxed at lower rates than short-term gains in most cases.

Why the IRS uses 1099-B information

The IRS matches 1099-B data to your tax return to verify that you reported all your investment sales. If you sold $10,000 worth of stock and received $15,000, the brokerage reports that $15,000 to the IRS. If your tax return shows only $12,000 in proceeds, the IRS will notice the gap.

Mismatches don't automatically mean you owe more tax — you might have sold multiple lots at different prices, or the brokerage might have made an error. But a discrepancy can trigger a notice asking you to explain the difference. Having your own records of what you paid for each investment helps you respond quickly.

The IRS also uses 1099-B data to identify people who are not reporting investment income at all. If a brokerage reports sales but you file a return with no capital gains section, that flags your return for review.

How to use your 1099-B to calculate capital gains

To find your gain or loss, subtract your cost basis from the proceeds. If you bought 100 shares at $50 per share ($5,000 total) and sold them for $7,000, your gain is $2,000. If you sold for $4,000, your loss is $1,000.

The 1099-B provides both numbers, but you should verify the cost basis is correct. If you bought shares in multiple transactions at different prices, or if you reinvested dividends, the brokerage's calculation might not match your records. Some brokerages allow you to choose which shares you're selling (specific identification), which affects your basis.

Separate your gains and losses into short-term (held one year or less) and long-term (held more than one year). You report these on Schedule D of your tax return. Short-term gains are taxed as ordinary income; long-term gains usually receive preferential tax rates.

When you might not receive a 1099-B

You won't receive a 1099-B if you didn't sell anything that year. Holding investments, receiving dividends, or earning interest doesn't generate a 1099-B — those appear on different forms (1099-DIV for dividends, 1099-INT for interest).

If you sold investments through a non-brokerage account — for example, selling a car or collectible to a private buyer — you won't get a 1099-B. That form is specific to securities sold through brokerages.

Some brokerages don't issue a 1099-B if your total proceeds fall below a certain threshold, though this is rare. If you think you should have received one and didn't, contact your brokerage directly.

Corrected 1099-B forms and amendments

If your brokerage made an error on your 1099-B, they will send you a corrected form, usually marked as "CORRECTED" at the top. You should use the corrected version when you file your return. The IRS also receives the corrected version, so your return will match.

If you discover an error after you've already filed your return, you can file an amended return (Form 1040-X) with the correct information. Keep a copy of both the original and corrected 1099-B with your tax records.

If your brokerage refuses to correct an obvious error, you can contact the IRS directly. Have your purchase records and the brokerage's original statement ready to show the discrepancy.

Frequently Asked Questions

Do I need to report every sale on my tax return if I received a 1099-B?

Yes. The IRS receives the same 1099-B data, so every sale should appear on your return. You report it on Schedule D, calculating your gain or loss for each transaction or group of transactions. If you sold at a loss, you still report it — losses can offset gains and reduce your taxable income.

What if my cost basis on the 1099-B is wrong?

Contact your brokerage and ask them to correct it if they made the error. If you have documentation showing a different purchase price, provide it to them. If the brokerage won't correct it, you can report the correct basis on your tax return and keep your purchase records in case the IRS asks questions.

Can I use a 1099-B to report sales from a different brokerage?

No. Each brokerage sends a 1099-B for only the sales they handled. If you sold investments through multiple brokerages, you'll receive a separate 1099-B from each one. Report all of them on your tax return.

What happens if I lose my 1099-B?

Contact your brokerage and request a duplicate. They can resend it electronically or by mail. You can also log into your brokerage account — most firms keep copies of past 1099-Bs in your account history for several years.

Does a 1099-B include fees or commissions I paid?

The proceeds shown on your 1099-B may already have fees deducted, depending on your brokerage. Check whether Box 1a (gross proceeds) or Box 1b (adjusted proceeds) is filled in. If you paid fees that weren't deducted, you can add them to your cost basis to reduce your taxable gain.