A 1099-B reports sales of stocks, bonds, mutual funds, and other securities you sold during the year

A 1099-B is the form your brokerage sends you when you sell investments. It lists what you sold, when you sold it, and how much you received. The IRS uses this form to match against your tax return and verify that you reported all your investment income.

You receive a 1099-B from any brokerage, investment firm, or financial institution that held securities in your account — whether that's a major firm like Fidelity or Schwab, a robo-advisor, or a smaller regional broker. If you sold nothing during the year, you won't receive one. If you held investments but didn't sell them, you won't receive one either — unrealized gains don't get reported on a 1099-B.

The form arrives by January 31 of the year after the sale. You receive a copy, the IRS receives a copy, and your state tax authority may receive a copy as well.

Key Takeaways

  • A 1099-B reports the sale price of securities you sold, not the profit — you calculate the gain or loss yourself by subtracting what you paid from what you received.
  • The form shows the sale date and proceeds, but your cost basis (what you originally paid) may not appear on it, so you need your own records to calculate taxable gain.
  • You report the information from your 1099-B on Schedule D, which is where you calculate and report capital gains and losses.
  • If your brokerage reports incorrect information, you can file an amended return, but the IRS will first match their copy against yours and may contact you if they don't match.

What information appears on a 1099-B

The form lists each security you sold separately. For each sale, you see the description of the security (the stock ticker or fund name), the date you sold it, the number of shares or units, and the gross proceeds — the total amount you received before any fees or taxes.

Box 1d shows the proceeds. This is the sale price multiplied by the number of shares, minus any broker fees the firm deducted from the sale. This is not your profit; it is the money that came in. Your profit is the proceeds minus what you originally paid for the security.

Box 1e may show your cost basis if your brokerage has that information on file. Many brokerages now report cost basis automatically, especially for stocks and mutual funds bought through that same firm. If you bought the security elsewhere or years ago, the cost basis box may be blank, and you will need to look up your original purchase records yourself.

The form also shows whether the gain or loss is long-term (you held it more than one year) or short-term (you held it one year or less). This distinction matters for tax rates — long-term gains usually receive preferential tax treatment.

How to find your cost basis if it is not on the form

If Box 1e is blank, you need to locate your original purchase confirmation or statement. Check your brokerage account history online — most firms keep transaction records going back several years. If you bought the security through a different broker that you no longer use, contact that firm's customer service and request a statement showing the purchase date and price.

For inherited securities, the cost basis is typically the fair market value on the date of death, not what the original owner paid. Your brokerage should have this information if the account was transferred to you as an inheritance.

If you genuinely cannot locate the purchase price and the brokerage has no record, you may need to research historical stock prices or fund values using financial databases. The IRS expects you to make a reasonable effort. Keep whatever documentation you use — if the IRS questions your return, you will need to show how you arrived at your cost basis figure.

Reporting your 1099-B information on your tax return

You report capital gains and losses on Schedule D, which is part of Form 1040. For each sale listed on your 1099-B, you enter the description, the date acquired, the date sold, the proceeds, the cost basis, and the gain or loss.

Short-term gains and losses go in Part I of Schedule D. Long-term gains and losses go in Part II. The form then nets these together — if you have multiple sales, you add up all the short-term gains and losses, then all the long-term gains and losses, then combine them.

If your total is a gain, that amount flows to your Form 1040 as taxable income. If your total is a loss, you can deduct up to $3,000 of losses against other income in that year. Any loss above $3,000 carries forward to future years.

Most tax software will import your 1099-B data directly from your brokerage if you connect your account, which reduces the chance of entry errors. If you are entering it manually, double-check the proceeds and cost basis figures against your brokerage statement.

What happens if your 1099-B contains an error

If the sale price, date, or security description is wrong, contact your brokerage when ready and ask them to issue a corrected 1099-B. They will send you a corrected form and file a corrected copy with the IRS. This usually happens within a few weeks.

If the error is discovered after you have already filed your return, you will need to file an amended return using Form 1040-X. Attach a corrected Schedule D showing the correct figures. The IRS will process your amendment and issue a refund if you overpaid, or bill you if you underpaid.

If you reported a different cost basis than what the brokerage reported, and the IRS notices the discrepancy, they may send you a notice asking you to explain the difference. Have your original purchase confirmation ready. If your cost basis was actually correct and the brokerage's report was wrong, you can respond with your documentation and request that the IRS adjust their records.

1099-B for different types of investments

Stocks and mutual funds are the most common securities on a 1099-B, but the form also covers bonds, exchange-traded funds (ETFs), options, and futures contracts. The reporting rules are the same — you report the proceeds and calculate your gain or loss.

For bonds, the proceeds include any accrued interest that was paid to you at sale. This accrued interest is taxable as ordinary income, not as a capital gain, so it may appear separately on the form or in your brokerage records.

For mutual funds and ETFs, the form works the same way as stocks. If you reinvested dividends, those reinvested amounts are part of your cost basis — your brokerage should include them in the cost basis calculation.

Options and futures are more complex. The 1099-B will show the sale, but the tax treatment depends on whether you held the contract short-term or long-term and whether it was a covered call, a spread, or an outright position. If you trade options regularly, consult a tax professional about how to report these correctly.

When you don't receive a 1099-B but should have

If you sold securities and your brokerage has not sent you a 1099-B by early February, contact them and ask for it. They are required to send it by January 31, and if they miss that important date, they should issue it as soon as possible.

If a brokerage goes out of business or closes your account, they are still required to send you a 1099-B for any sales that occurred while you were a customer. If you cannot locate the firm or they are unresponsive, contact the Financial Industry Regulatory Authority (FINRA) or your state's securities regulator for help locating the form or reconstructing the transaction.

If you sold securities through a platform that is not a traditional brokerage — for example, through a peer-to-peer marketplace or a cryptocurrency exchange — the reporting may be different. Some of these platforms do not issue 1099-Bs, and you may need to report the transaction yourself based on your own records. Check the platform's tax documentation to understand what they report to the IRS.

Frequently Asked Questions

Do I report the sale price or the profit on my tax return?

You report the profit (or loss), not the sale price. The 1099-B shows the sale price in the "proceeds" box, but you subtract your cost basis from that to get the gain or loss. That gain or loss is what goes on Schedule D and ultimately affects your taxable income.

What if I sold the same stock multiple times at different prices?

Each sale is listed separately on your 1099-B. You report each one on Schedule D with its own cost basis and gain or loss. If you bought 100 shares at $10, then 100 shares at $15, then sold 150 shares at $20, your brokerage will show which shares were sold (using your chosen method: FIFO, specific ID, or average cost) and calculate the cost basis accordingly.

Can I use the proceeds amount as my cost basis if I lost the original purchase receipt?

No. The proceeds are what you received when you sold; the cost basis is what you paid when you bought. These are two different numbers. If you cannot find your original purchase price, research historical prices or contact your brokerage for account records before filing your return.

What if I inherited stock and sold it — do I use the original purchase price as cost basis?

No. For inherited securities, your cost basis is the fair market value on the date the person died, not what they originally paid. This is called a "step-up in basis." Your brokerage should have this value on file if the account was transferred to you as an inheritance.

Do I need to report a 1099-B if I had a loss?

Yes. Even if you lost money on the sale, you report it on Schedule D. Capital losses can offset capital gains, and up to $3,000 of net losses can offset other income. Losses above that carry forward to future years, so reporting them is important for your tax situation.