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Traders & crypto sellers

1099-BProceeds from Broker and Barter Exchange Transactions

Reports stock, crypto, mutual fund, and other investment sales. Shows your proceeds and cost basis for calculating capital gains or losses.

Who needs to file this form

Your broker or exchange sends a 1099-B when you sell stocks, bonds, mutual funds, ETFs, options, or (for 2026+) cryptocurrency. It's also generated for bond maturities and redemptions. If you sold any investment in a taxable account during the year, expect a 1099-B.

Key Deadlines

Broker must send 1099-B to you

February 15, 2027

Often included in a consolidated 1099 (may arrive mid-February with corrections)

File return reporting gains/losses

April 15, 2027

Step-by-Step Filing Guide

1

Review each transaction for accuracy

The 1099-B lists each sale: date acquired, date sold, proceeds (sale price), and cost basis. Verify against your own records. Brokers sometimes report incorrect basis, especially for transferred-in assets or crypto.

2

Classify as short-term or long-term

Held over 1 year = long-term (taxed at 0%, 15%, or 20%). Held 1 year or less = short-term (taxed as ordinary income, up to 37%). The holding period matters significantly -- long-term rates can save thousands.

3

Complete Form 8949

List each transaction on Form 8949, categorized by: (A) short-term with basis reported to IRS, (B) short-term without basis reported, (D) long-term with basis reported, (E) long-term without basis reported. Adjust basis if the 1099-B amount was incorrect.

4

Transfer totals to Schedule D

Carry totals from Form 8949 to Schedule D (Capital Gains and Losses). Schedule D nets your gains and losses and determines your total capital gain or loss for the year.

5

Apply the $3,000 capital loss deduction if applicable

If your total capital losses exceed gains, you can deduct up to $3,000 ($1,500 if married filing separately) of net capital losses against ordinary income. Excess losses carry forward to future years indefinitely.

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Tax education only. Based on IRS form instructions and publications. Not tax advice.