Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, reports sales of investments and other capital assets. The information from Form 1099-B is generally reported on Form 8949 and Schedule D, where capital gains and losses are calculated.
If your brokerage issued a 1099 composite statement, you'll need to enter each form included in the statement separately in the appropriate area of your return.
What Is a 1099 Composite Statement?
A 1099 composite statement combines information from multiple tax forms into a single document. Depending on your financial institution, it may include:
- Form 1099-B (investment sales)
- Form 1099-INT (interest income)
- Form 1099-DIV (dividend income)
- Form 1099-OID (original issue discount)
- Form 1099-MISC (miscellaneous income)
Enter each form type using the appropriate section of the program.
Form 1099-MISC
Tax Home → Federal Section → Income (Select My Forms) → 1099-MISC
Forms 1099-INT, 1099-DIV, and 1099-OID
Tax Home → Federal Section → Income (Select My Forms) → 1099-INT, DIV, OID
Form 1099-B
Tax Home → Federal Section → Income (Select My Forms) → Investments → Stocks, Mutual Funds, Cryptocurrency, Collectibles, etc.
How to Enter Form 1099-B Information
Most investment transactions require information from Boxes 1a through 1e of Form 1099-B.
Box 1a - Description of Property
Enter a brief description of the asset sold.
Examples:
- Apple stock
- Google stock
- Mutual fund shares
- ETF shares
Box 1b - Date Acquired
Enter the date the investment was originally purchased.
Box 1c - Date Sold
Enter the date the asset was sold or exchanged.
Box 1d - Proceeds (Sales Price)
Enter the amount received from the sale.
This amount is typically reported net of commissions and certain transaction fees.
Box 1e - Cost Basis
Enter the cost or other basis of the investment. This is generally the amount you originally paid for the asset.
Box 1g - Adjustments
Only enter an amount if Form 1099-B specifically reports an adjustment.
Common examples include:
- Wash sale adjustments
- Accrued market discount adjustments
Box 3 - Collectibles or Qualified Opportunity Fund (QOF)
If applicable, indicate whether the sale involves a collectible or a Qualified Opportunity Fund investment.
Box 4 - Federal Income Tax Withheld
If federal backup withholding is reported, enter it separately under:
Federal Section → Payments and Estimates → Other Federal Withholding
Boxes 8-11 - Section 1256 Contracts
For Section 1256 contract gains and losses, navigate to:
Federal Section → Income (Select My Forms) → Less Common Income → Gains and Losses From Section 1256 Contracts (Form 6781)
Box 12 - Covered or Noncovered Security
Indicate whether the cost basis was reported to the IRS.
- Covered security = Basis reported to the IRS
- Noncovered security = Basis not reported to the IRS
Your brokerage will identify this on Form 1099-B.
Box 16 - State Tax Withheld
If state withholding is reported, enter it under:
Federal Section → Payments and Estimates → Other State Withholding
How Do I Report Multiple Transactions?
If you have many investment sales, you may be able to combine similar transactions into a single summary entry instead of entering each sale separately.
Generally, transactions can be grouped when they are:
- All short-term or all long-term
- All basis reported or all basis not reported
- Reported by the same brokerage firm
- Included within the same reporting category
Many brokers already provide subtotal lines that summarize these transactions.
Entering a Summary Transaction
Description
Enter a general description of the assets being grouped.
Example:
- "Netflix Stock"
- "Mutual Fund Sales"
Date Acquired
Select the alternate acquisition option and choose:
- Various - Short-Term, or
- Various - Long-Term
Date Sold
Enter the latest sale date included in the group.
Sales Price
Enter the combined proceeds from all grouped transactions.
Cost Basis
Enter the combined cost basis for all transactions included in the group.
Adjustments
Enter an amount only when a gain or loss adjustment is required. The adjustment amount will increase or decrease the reported gain or loss.
Are Capital Losses Limited?
Yes. If your capital losses exceed your capital gains, you can generally deduct up to:
- $3,000 per year against ordinary income, or
- $1,500 if Married Filing Separately
Any unused loss is carried forward to future tax years.
How Do I Report a Capital Loss Carryover?
If you're carrying forward losses from a prior year, go to:
Federal Section → Income → Investments → Capital Loss Carryover
The program will calculate the allowable carryover based on IRS rules.
Can I Import My 1099-B Transactions?
For tax years 2021 and later, taxpayers using qualifying software packages may be able to import capital gain and loss transactions using a supported CSV file.
This can be especially helpful if your brokerage statement contains a large number of transactions.
If importing isn't available for your situation, you can:
- Enter each transaction individually, or
- Use summary reporting when permitted.
Keep Your Supporting Records
Even if you summarize transactions on your return, keep copies of:
- Form 1099-B
- Brokerage statements
- Cost basis records
- Trade confirmations
- Supporting worksheets
The IRS may request additional documentation to verify reported gains, losses, and basis amounts.
Helpful Tip
Before entering your Form 1099-B, review whether your broker has already grouped transactions into summary categories. Using the subtotals provided on your statement can save time and reduce data-entry errors while still accurately reporting your investment activity.
Additional Information:
Please make sure to keep all records for the IRS regarding these transactions in case the IRS request these documents.