What is Form 1099-B?
Form 1099-B is useful for reporting and calculating taxes that apply to capital gains. For instance, the form will disclose the proceeds of the sale and how much of those proceeds are capital gains, as well as whether those gains are long-term or short-term in nature (this affects the taxability of the gain). Brokerage firms must send the forms to taxpayers by January 31 of each year.
How Does Form 1099-B Work?
Let's say John Doe sells 1,000 shares of Company XYZ out of his Charles Schwab account. The brokerage firm gives him (and the IRS) a Form 1099-B, which shows what was sold and the proceeds from the transaction. John uses this form when he files his tax return at the end of the year.
Why Does Form 1099-B Matter?
A Form 1099-B is an IRS form used to report the sale of stocks, mutual funds and other securities.
