Form 1099-B Explained

Financial institutions report sales of investment property to the IRS and their clients on Form 1099-B, Proceeds From Broker and Barter Exchange Transactions or a substitute statement. Form 1099-B may show either gross proceeds or net proceeds.

Gross proceeds:

If gross proceeds and selling expenses are separately stated on Form 1099-B, include on Schedule D the gross proceeds amount in column (d) and add the selling expenses to the cost basis in column (e).

Net proceeds:

If only net proceeds are reported on Form 1099-B, report the net amount as the sales price in column (d) of Schedule D.

Do not include selling expenses in column (e).

QuickBooks Self-Employed
For Freelancers and independent Contractors

- Organize your financial data into one central accounting system on the cloud
- Software kept up to date.
- Your data kept secure
- Anytime, anywhere data access.
- Pay your quarterly estimated taxes online.
- Export Schedule C to TurboTax at year-end for faster filing.
- Save up to 50% off QuickBooks Self-Employed. Track every deduction! Start your free trial now!

Have an accounting or bookkeeping question? Email it to me.