Instructions for Form 1099-B, Proceeds from Broker and Barter Exchange Transactions

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• Section: Treasury Department

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2024

Instructions for Form 1099-B

Proceeds From Broker and Barter Exchange Transactions

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue Code

unless otherwise noted.

Future Developments

For the latest information about developments related to

Form 1099-B and its instructions, such as legislation

enacted after they were published, go to IRS.gov/

Form1099B.

Reminders

In addition to these specific instructions, you should also

use the current General Instructions for Certain

Information Returns. Those general instructions include

information about the following topics.

•Who must file.

•When and where to file.

•Electronic reporting.

•Corrected and void returns.

•Statements to recipients.

•Taxpayer identification numbers (TINs).

•Backup withholding.

•Penalties.

•The definitions of terms applicable for chapter 4

purposes that are referenced in these instructions.

•Other general topics.

You can get the general instructions from General

Instructions for Certain Information Returns at IRS.gov/

1099GeneralInstructions or go to IRS.gov/Form1099B.

Online fillable copies. To ease statement furnishing

requirements, Copies B, 1, and 2 are fillable online in a

PDF format available at IRS.gov/Form1099B. You can

complete these copies online for furnishing statements to

recipients and for retaining in your own files.

Specific Instructions

A broker or barter exchange must file Form 1099-B for

each person:

•For whom the broker has sold (including short sales)

stocks, commodities, regulated futures contracts, foreign

currency contracts (pursuant to a forward contract or

regulated futures contract), forward contracts, debt

instruments, options, securities futures contracts, etc., for

cash;

•Who received cash, stock, or other property from a

corporation that the broker knows, or has reason to know,

has had its stock acquired in an acquisition of control or

had a substantial change in capital structure reportable on

Form 8806, Information Return for Acquisition of Control

or Substantial Change in Capital Structure; or

•Who exchanged property or services through a barter

exchange.

Qualified Opportunity Funds (QOF)

A QOF is an investment vehicle organized as a

corporation or a partnership for the purpose of investing in

qualified opportunity zone property. See section

1400Z-2(d).

Reporting dispositions of QOF investments. Report

all dispositions of interests in the QOF regardless of the

identity of the person who disposed of it. For example, if

the person is a corporation, you should still file a Form

1099-B. A disposition includes any disposition of the

investment (whether or not the disposition is for

consideration), including by gift or inheritance.

Report each disposition on a separate Form 1099-B,

regardless of how many dispositions any one person has

made in the calendar year. The reporting Exceptions

under Brokers, and the reporting Exceptions under Barter

Exchanges, later, do not apply to dispositions of interests

in a QOF. If you are a QOF that is not a broker or barter

exchange and do not know that a broker or barter

exchange reported a disposition of an interest in the QOF,

then complete the following on the form in the manner

instructed for the respective items and boxes.

•Box 1a. For interests in the QOF, enter the appropriate

descriptions. For example, for stock, enter the number of

shares or units; for partnerships, enter the percentage of

investment.

•Box 1b. Enter the acquisition date of any interest in the

QOF, if known.

•Box 1c. Enter the date of disposition of any interest in

the QOF.

•Box 1d. Enter the gross cash proceeds from the

disposition of any interest in the QOF, if known.

•Box 3. Check the “QOF” box for reporting the

disposition of an interest in the QOF.

QOFs must furnish a statement to the person who

disposed of the interest in the QOF investment. For

additional information on furnishing statements, see part

M in the current General Instructions for Certain

Information Returns.

If you are a broker or barter exchange, including a QOF

that is a broker or barter exchange, complete Form

1099-B as usual for all dispositions of interests in QOFs.

Follow the specific instructions for brokers or barter

exchanges (for example, the reporting of basis for a QOF

investment that is a covered security). Complete all boxes

as appropriate, depending on the nature of the interest

disposed. For example, if the QOF investment is stock,

you must complete box 1e to report cost or other basis.

Also, you must check the QOF box in box 3 for all

dispositions of QOF investments.

Brokers

A broker is any person who, in the ordinary course of a

trade or business, stands ready to effect sales to be made

Nov 1, 2023 Cat. No. 64171A