What does Form 1099-B report?

Form 1099-B is specifically designed to report transactions involving the sale of certain types of securities, including stocks and bonds, that have been sold through a broker. This form details important information about the sales, such as the date of the transaction, the gross proceeds from the sale, and any related cost basis, which is essential for calculating capital gains or losses.

When you sell securities, the brokerage firm is responsible for reporting these transactions to the IRS, and Form 1099-B serves as the official record of these transactions. This form is critical for taxpayers who need to report their capital gains or losses on their tax returns, as it helps them determine how much tax they owe on profits from these sales.

Income from rental properties, gains from the sale of collectibles, and income from dividends are reported on different forms, such as Schedule E for rental income, Form 8949 for sales of collectibles, and Form 1099-DIV for dividends. Each of these has its own reporting requirements and forms, making Form 1099-B unique in its specific purpose of reporting securities transactions executed through a brokerage.