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Form 1099-B Instructions

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

Rev. 2023

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  • Form 1099-B - Proceeds From Broker and Barter Exchange Transactions
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Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for Form 1099-B  
Proceeds From Broker and Barter Exchange Transactions  
Section references are to the Internal Revenue Code  
unless otherwise noted.  
Qualified Opportunity Funds  
A Qualified Opportunity Fund (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).  
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/  
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  
Reminders  
In addition to these specific instructions, you should also  
use the 2023 General Instructions for Certain Information  
Returns. Those general instructions include information  
about the following topics.  
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.  
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.  
Box 1a. For interests in the QOF, enter the appropriate  
Other general topics.  
descriptions. For example, for stock, enter the number of  
shares or units; for partnerships, enter the percentage of  
investment.  
You can get the general instructions from General  
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  
Online fillable copies. To ease statement furnishing  
requirements, Copies B, C, 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.  
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.  
Specific Instructions  
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 2023 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.  
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.  
Brokers  
A broker is any person who, in the ordinary course of a  
trade or business, stands ready to effect sales to be made  
Sep 26, 2022  
Cat. No. 64171A  
by others. A broker may include a U.S. or foreign person  
or a governmental unit and any subsidiary agency.  
Additional information required for covered securi-  
ties. For each sale of a covered security for which you  
are required to file Form 1099-B, report the date of  
acquisition (box 1b); whether the gain or loss is short-term  
or long-term, and whether any portion of the gain or loss is  
ordinary (box 2); cost or other basis (box 1e); the amount  
of accrued market discount (box 1f); and the loss  
You are considered a broker if:  
You are an obligor that regularly issues and retires its  
own debt obligations, or  
You are a corporation that regularly redeems its own  
stock.  
disallowed due to a wash sale (box 1g). When selling a  
noncovered security and reporting it on a separate Form  
1099-B, you may check box 5 and leave boxes 1b, 1e, 1f,  
1g, and 2 blank. If you check box 5, you may choose to  
report the information requested in boxes 1b, 1e, 1f, 1g,  
and 2 and will not be subject to penalties under section  
6721 or 6722 for failure to report this information correctly.  
However, for a sale, redemption, or retirement at an office  
outside the United States, only a U.S. payer or U.S.  
middleman is a broker. See Regulations sections  
1.6045-1(g)(1) and 1.6049-5(c)(5).  
You are not considered a broker if:  
You are a corporation that purchases odd-lot shares  
from its stockholders on an irregular basis (unless facts  
indicate otherwise),  
Example. Your customer Bella bought shares of stock  
in ABC Corporation in April 2001, April 2022, and August  
2022. The shares of stock bought in 2022 are covered  
securities. The shares of stock bought in April 2001 are  
noncovered securities. In June 2023, Bella sells all of the  
stock in a single transaction. Even though the stock was  
sold in a single transaction, you must report the sale of the  
covered securities on two separate 2023 Forms 1099-B  
(one for the securities bought in April 2022 with long-term  
gain or loss and one for the securities bought in August  
2022 with short-term gain or loss). You must report the  
sale of the noncovered securities on a third Form 1099-B  
or on the Form 1099-B reporting the sale of the covered  
securities bought in April 2022 (reporting long-term gain or  
loss). You may check box 5 if reporting the noncovered  
securities on a third Form 1099-B. If you check box 5, you  
may leave boxes 1b, 1e, and 2 blank or you may complete  
boxes 1b, 1e, and 2 and not be subject to penalties under  
section 6721 or 6722 for failing to report this information  
correctly.  
You manage a farm for someone else, or  
You are an international organization that redeems or  
retires its own debt. See Regulations section 1.6045-1(a)  
(1).  
Reporting  
How many transactions to report on each form.  
Report each transaction (other than regulated futures,  
foreign currency, or Section 1256 option contracts) on a  
separate Form 1099-B. Report transactions involving  
regulated futures, foreign currency, or Section 1256  
option contracts on an aggregate basis. However, you  
may report these contracts on an aggregate basis on a  
separate Form 1099-B for each type of contract.  
How many forms to file for each transaction. Report  
sales of each of the following types of securities on a  
separate Form 1099-B, even if all three types were sold in  
a single transaction.  
Short sales of securities. Do not report a short sale  
entered into after 2010 until the year a customer delivers a  
security to satisfy the short sale obligation, unless there is  
backup withholding. See Backup withholding, later.  
Disregard sections 1259 (constructive sales) and 1233(h)  
(short sales of property that becomes worthless). Report  
the short sale on a single Form 1099-B unless:  
Covered securities (defined later) with short-term gain  
or loss.  
Covered securities with long-term gain or loss.  
Noncovered securities (securities that are not covered  
securities) if you choose to check box 5 when reporting  
their sale.  
Closing transactions. In the case of an option, a  
regulated futures contract, a securities futures contract, or  
a forward contract, a sale includes any closing  
transaction. A closing transaction is a lapse, expiration,  
settlement, abandonment, or other termination of a  
position (which includes a right or an obligation under a  
forward contract, a regulated futures contract, a securities  
futures contract, or an option).  
You are reporting both short-term and long-term gain or  
loss from a short sale closed by delivery of covered  
securities (as explained earlier under How many forms to  
The securities delivered to close the short sale include  
both covered securities and noncovered securities (as  
explained earlier under How many forms to file for each  
transaction), or  
There was backup withholding and other conditions  
Example. An option that is a covered security, that  
also has a basis of zero in the option upon a closing  
transaction, enter -0- in box 1e.  
apply (see Backup withholding, later).  
Report on Form 1099-B the relevant information about the  
security sold to open the short sale, with the exceptions  
described in the following paragraphs.  
Substitute statements. Brokers that use substitute  
statements may be able to report customer transactions  
(stock sales (Form 1099-B), interest earned (Forms  
1099-INT and 1099-OID), dividends (Form 1099-DIV),  
and foreign taxes paid (Forms 1099-DIV and 1099-INT))  
for the year on a single substitute statement. For details,  
see Pub. 1179, General Rules and Specifications for  
Substitute Forms 1096, 1098, 1099, 5498, and Certain  
Other Information Returns, at IRS.gov/Pub1179, which  
provides the rules for substitute forms.  
In box 1a, report the quantity of the security delivered to  
close the short sale.  
In box 1b, report the acquisition date of the security  
delivered to close the short sale.  
In box 1c, report the date the security was delivered to  
close the short sale.  
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Instructions for Form 1099-B (2023)  
   
In box 1e, report the adjusted basis of the security  
delivered to close the short sale.  
In box 2, report whether any gain or loss on the closing  
of the short sale is short-term or long-term based on the  
acquisition date of the security delivered to close the short  
sale. Apply section 1233(d), if applicable.  
If the short sale is closed by delivery of a noncovered  
security, you may check box 5. In this case, you do not  
have to complete boxes 1b, 1e, and 2. However, if you  
choose to report the information in those boxes and check  
box 5, you will not be subject to the penalties under  
sections 6721 and 6722 for failure to report that  
information correctly.  
If a short sale obligation is satisfied by delivery of a  
security transferred into a customer's account  
accompanied by a transfer statement indicating the  
security was borrowed, see Regulations section  
1.6045-1(c)(3)(xi)(C).  
proceeds, sales asset proceeds, and sales proceeds to a  
TIH.  
Requirement to furnish a tax information statement  
to TIH. A tax information statement that includes the  
information provided to the IRS on Form 1099-B, as well  
as additional information identified in Regulations section  
1.671-5(e), must be provided to TIHs. The written tax  
information statement furnished to the TIH for 2023 is due  
on or before March 15, 2024. The amount of an item of a  
trust expense that is attributable to a TIH must be included  
on the tax information statement provided to the TIH and  
is not required to be included in box 5 on the Form  
1099-DIV. See Regulations section 1.671-5(e) for a  
complete list of the items of information that must be  
included in the statement to the TIH.  
Acquisition of control or substantial change in capi-  
tal structure. File Form 1099-B for each customer who  
received cash, stock, or other property from a corporation  
that you know, or have reason to know based on readily  
available information, must recognize gain under section  
367(a) from the transfer of property to a foreign  
corporation in an acquisition of control or substantial  
change in capital structure reportable on Form 8806.  
Readily available information includes information from a  
clearing organization, such as the Depository Trust  
Company (DTC), or from information published on the IRS  
website.  
In the case of a short sale, you can take backup  
withholding either:  
From the gross proceeds when the short sale is  
opened, or  
From any gain when the short sale is closed if you  
expect to be able to determine the gain on the short sale  
at that time.  
Backup withholding. If backup withholding was taken  
from the gross proceeds when a short sale was opened in  
2023 but the short sale was not closed by the end of 2023,  
file a 2023 Form 1099-B. Report the tax withheld in box 4.  
In box 1a, enter a brief description of the transaction (for  
example, “$5,000 short sale of 100 shares of ABC stock  
not closed”). Leave the other numbered boxes blank. File  
a final Form 1099-B for the year the short sale is closed,  
as described above, but do not include the 2023 tax  
withheld on that Form 1099-B.  
Widely held fixed investment trusts (WHFITs).  
Trustees and middlemen must report the amount of  
non-pro rata partial principal payments (as defined in  
Regulations section 1.671-5(b)(13)), trust sales proceeds  
(as defined in Regulations section 1.671-5(b)(21)),  
redemption asset proceeds (as defined in Regulations  
section 1.671-5(b)(14)), redemption proceeds (as defined  
in Regulations section 1.671-5(b)(15)), the sales asset  
proceeds (as defined in Regulations section 1.671-5(b)  
(17)), and the sales proceeds (as defined in Regulations  
section 1.671-5(b)(18)) that are attributable to a trust  
interest holder (TIH) for the calendar year on Form  
1099-B.  
TIP  
You are not required to file a second Form 1099-B for a  
customer who received only cash for stock acquired in an  
acquisition of control if you report the cash as proceeds  
from a sale on another Form 1099-B. You are also not  
required to file Form 1099-B for a customer who is an  
exempt recipient (under Regulations section 1.6045-1(c)  
(3)(i) or 1.6043-4(b)(5)). For a list of exempt recipients,  
see the current Instructions for Form 1099-CAP.  
Enter in box 1d the aggregate amount of cash and the  
fair market value (FMV) of any stock and other property  
received in exchange for stock held in your custody. Also,  
check box 7.  
In box 1a, show the corporation's name and the  
number of shares of the corporation's stock you held that  
were exchanged. Also enter the class or classes of stock  
(for example, preferred, common, etc.) that were  
exchanged, whether for cash or other property.  
Abbreviate the class to fit the entry. For example, enter  
“C” for common stock, “P” for preferred, or “O” for other.  
Also abbreviate any subclasses.  
Leave the other numbered boxes and the CUSIP  
number box blank unless you are required to file a Form  
1099-B to report proceeds you paid to the customer from  
the acquisition of control or substantial change in capital  
structure and you choose to file and furnish one Form  
1099-B for amounts reported under both Regulations  
sections 1.6045-1 and 1.6045-3. If you choose to combine  
the reporting for both, do not combine other transactions  
the customer may have had during the year with the  
reporting of the acquisition of control or change in capital  
structure. Also, in box 1e, report the total basis of the  
To determine the amount of each item of proceeds to  
be reported on Form 1099-B, see, generally, Regulations  
section 1.671-5. If the trustee provides WHFIT information  
using the safe harbor rules in Regulations section  
1.671-5(f)(1) or (g)(1), the trustee or middleman must  
determine the amounts reported on Forms 1099 under  
Regulations section 1.671-5(f)(2) or (g)(2), as appropriate.  
Check box 5 and leave boxes 1b, 1e, and 2 blank if:  
You are a broker reporting the sale of a security held by  
a WHFIT to the WHFIT trustee; or  
You are a trustee or middleman of a WHFIT reporting  
non-pro rata partial principal payments, trust sale  
proceeds, redemption asset proceeds, redemption  
Instructions for Form 1099-B (2023)  
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customer's stock. Do not enter an amount in box 1e that is  
greater than the amount entered in box 1d.  
d. The United States or any state or a political  
subdivision of the United States or any state.  
e. Corporations. However, see Identifying a  
Cash on delivery account. For a sale of securities  
through a “cash on delivery” or similar account, only the  
broker that receives the gross proceeds from the sale  
against delivery of the securities sold is required to report  
the sale. However, if such broker's customer is a  
corporation, later, for instructions about how to know  
whether a customer is a corporation for this purpose. Also,  
you must file Form 1099-B for the sale of a covered  
security (defined later) by an S corporation if the S  
corporation acquired the covered security after 2011.  
“second-party broker” that is an exempt recipient, only the  
second-party broker is required to report the sale.  
2. Sales initiated by dealers in securities and financial  
institutions.  
Foreign currency. If the purchase amount or sales  
proceeds are paid in foreign currency, you must report the  
amount of foreign currency in U.S. dollars. Generally, you  
must determine the reportable amount (other than  
amounts representing accrued interest or original issue  
discount) as of the date you receive, credit, or make the  
payment, whichever applies, at the spot rate or by  
following a reasonable spot rate convention, such as a  
month-end spot rate or a monthly average spot rate.  
When reporting the purchase or sale of a security traded  
on an established securities market, you must determine  
the U.S. dollar amounts to be reported (other than  
amounts representing accrued interest or original issue  
discount) as of the settlement date, at the spot rate or by  
following a reasonable spot rate convention. See  
Regulations section 1.6045-1(d)(8).  
Generally, payments of foreign currency amounts  
representing accrued interest or original issue discount  
must be translated using the average rate for the interest  
accrual period, although certain customers may elect to  
translate such amounts using the spot rate on the last day  
of the interest accrual period. See Regulations sections  
1.988-2(b)(2) and 1.6045-1(n)(4)(v).  
Substitute payments. Do not report substitute  
payments in lieu of dividends and tax-exempt interest on  
Form 1099-B. Instead, report these payments in box 8 of  
Form 1099-MISC, Miscellaneous Income. See section  
6045(d) and the Instructions for Forms 1099-MISC and  
1099-NEC.  
Stock options granted in connection with the per-  
formance of services. If an employee, former  
employee, or other service provider, in connection with  
the performance of services, obtains substantially vested  
shares of stock from the exercise of a stock option, and  
sells that stock through a broker on the same day, then  
the broker may not be required to report the sale on Form  
1099-B. For details, see Rev. Proc. 2002-50, which is on  
page 173 of Internal Revenue Bulletin 2002-29 at  
3. Sales by custodians and trustees, provided the sale  
is reported on a properly filed Form 1041, U.S. Income  
Tax Return for Estates and Trusts.  
4. Sales of shares in a regulated investment company  
that is a money market fund.  
5. Obligor payments on the following.  
a. Nontransferable obligations, such as savings bonds  
or CDs.  
b. Obligations for which gross proceeds are reported  
on other Forms 1099, such as stripped coupons issued  
before July 1, 1982.  
c. Callable demand obligations issued before January  
1, 2014, that have no premium or discount.  
6. Sales of foreign currency unless under a forward or  
regulated futures contract that requires delivery of foreign  
currency.  
7. Sales of fractional shares of stock if gross proceeds  
are less than $20.  
8. Retirements of book-entry or registered form  
obligations issued before January 1, 2014, if no interim  
transfers have occurred.  
9. Sales for exempt foreign persons as defined in  
Regulations section 1.6045-1(g)(1).  
10. Sales of Commodity Credit Corporation certificates.  
11. Spot or forward sales of agricultural commodities.  
later.  
12. Some sales of precious metals. See Sales of  
precious metals, later.  
13. Grants or purchases of options, purchases due to  
exercises of call options, or entering into contracts that  
require delivery of personal property or an interest therein.  
14. Sales (including retirements) of short-term  
obligations issued on or after January 1, 2014. However, a  
broker may be required to file a Form 1099-INT for interest  
or original issue discount on a short-term obligation.  
Partnership sale. Form 8308, Report of a Sale or  
Exchange of Certain Partnership Interests, does not have  
to be filed if, under section 6045, a return is required to be  
filed by a broker on Form 1099-B for the transfer of the  
partnership interest.  
Identifying a corporation. For sales of covered  
securities (defined later) that were acquired after 2011,  
you cannot rely on Regulations section 1.6049-4(c)(1)(ii)  
(A) to tell whether a customer is a corporation. However,  
for sales of all securities, you can treat a customer as an  
exempt recipient if one of the following statements is true.  
1. The name of the customer contains the term  
“insurance company,” “indemnity company,” “reinsurance  
company,” or “assurance company.”  
Exceptions. Brokers are not required to file, but may file,  
Form 1099-B for the following.  
1. Sales for exempt recipients, including the following.  
a. Charitable organizations.  
2. The name of the customer indicates it is an entity  
listed as a per se corporation under Regulations section  
301.7701-2(b)(8)(i).  
b. IRAs.  
c. Archer MSAs and health savings accounts (HSAs).  
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Instructions for Form 1099-B (2023)  
   
3. You receive a properly completed exemption  
certificate on Form W-9 that shows the customer is not an  
S corporation.  
4. You receive a Form W-8 that includes a certification  
that the person whose name is on the form is a foreign  
corporation.  
statement within 15 days after the date of settlement for  
the transfer.  
The transferor must furnish a separate statement for  
each security and, if transferring custody of the same  
security acquired on different dates or at different prices,  
for each acquisition. However, a separate statement is not  
required for:  
Spot or forward sales of agricultural commodities.  
Agricultural commodities include grain, feed, livestock,  
meat, oil seed, timber, and fiber. A spot sale is a sale that  
results in almost immediate delivery of a commodity. A  
forward sale is a sale under a forward contract. However,  
sales and exchanges of timber for lump-sum payments  
must be reported on Form 1099-S, Proceeds From Real  
Estate Transactions.  
Report sales of agricultural commodities under a  
regulated futures contract, sales of derivative interests in  
agricultural commodities, and sales of receipts for  
agricultural commodities issued by a designated  
warehouse on Form 1099-B. A designated warehouse is a  
warehouse, depository, or other similar entity designated  
by a commodity exchange in which or out of which a  
particular type of agricultural commodity is deliverable to  
satisfy a regulated futures contract. Sales of warehouse  
receipts issued by any other warehouse are not  
reportable.  
Sales of precious metals. A sale of a precious metal  
(gold, silver, platinum, or palladium) in any form for which  
the Commodity Futures Trading Commission (CFTC) has  
not approved trading by regulated futures contract (RFC)  
is not reportable. Further, even if the sale is of a precious  
metal in a form for which the CFTC has approved trading  
by RFC, the sale is not reportable if the quantity, by weight  
or by number of items, is less than the minimum required  
quantity to satisfy a CFTC-approved RFC.  
For example, a broker selling a single gold coin does  
not need to file Form 1099-B even if the coin is of such  
form and quality that it could be delivered to satisfy a  
CFTC-approved RFC if all CFTC-approved contracts for  
gold coins currently call for delivery of at least 25 coins.  
Sales of precious metals for a single customer during a  
24-hour period must be aggregated and treated as a  
single sale to determine if this exception applies. This  
exception does not apply if the broker knows or has  
reason to know that a customer, either alone or with a  
related person, is engaging in sales to avoid information  
reporting.  
Exemption certificate. A broker may require an exempt  
recipient to file a properly completed Form W-9, Request  
for Taxpayer Identification Number and Certification, or  
similar form. A broker may treat an exempt recipient that  
fails to do so as a recipient that is not exempt. See part J  
in the 2023 General Instructions for Certain Information  
Returns for more information.  
Noncovered securities, and  
Securities acquired more than 5 years before the  
transfer for which basis is determined using an average  
basis method.  
These rules apply to:  
Any broker,  
Anyone that acts as a custodian of securities in the  
ordinary course of a trade or business,  
Any issuer of securities,  
Any trustee or custodian of an individual retirement  
plan, or  
Any agent of the above.  
These rules do not apply to:  
The beneficial owner of a security or any agent  
substituted for an undisclosed beneficial owner,  
Any governmental unit or any agency or instrumentality  
of a governmental unit holding escheated securities, or  
Any organization that holds and transfers obligations  
among members as a service to its members.  
Information required. Each transfer statement must  
include:  
Date the statement is furnished;  
Name, address, and telephone number of the person  
furnishing the statement;  
Name, address, and telephone number of the broker  
receiving custody of the security;  
Name of the customer(s) for the account from which the  
security is transferred;  
Account number for the transferring account and, if  
different, the receiving account;  
CUSIP or other security identifier number of the  
transferred security;  
Number of shares or units;  
Type of security (such as stock, debt instrument, or  
option);  
Date the transfer was initiated and settlement date of  
the transfer (if known); and  
The security's total adjusted basis, original acquisition  
date, and, if applicable, the holding period adjustment  
under section 1091.  
For a debt instrument, the following additional  
information is required.  
A description of the payment terms used by the broker  
to compute any basis adjustments under Regulations  
section 1.6045-1(n).  
The issue price.  
The issue date, if different from the original acquisition  
Transfer Statement  
date.  
The adjusted issue price as of the transfer date.  
Any person that transfers custody of a specified security  
(defined later) to a broker after 2010 (after 2011 if the  
stock is in a regulated investment company, and after  
2014 for certain debt instruments, options, and securities  
futures contracts) must give the broker a written transfer  
The initial basis.  
Any market discount that has accrued as of the transfer  
date.  
Instructions for Form 1099-B (2023)  
-5-  
     
Any bond premium that has been amortized as of the  
security. But you do not have to file a corrected Form  
1099-B if you receive the statement more than 3 years  
after you filed the original Form 1099-B. You must also  
furnish a corrected transfer statement within 15 days of  
receiving a transfer statement indicating that a security is  
a covered security if you transferred the security  
transferred to you. But you do not have to furnish a  
corrected transfer statement if you receive the transfer  
statement more than 18 months after you furnished your  
transfer statement.  
transfer date.  
Any acquisition premium that has been amortized as of  
the transfer date.  
Whether the transferring broker has computed any of  
the information by taking into account one or more  
elections under Regulations section 1.6045-1(n).  
The last date on or before the transfer date that the  
broker made an adjustment for a particular item relating to  
a debt instrument transferred on or after January 1, 2016.  
For all option transfers, include the following.  
More information. For more information about transfer  
statements, including definitions, exceptions, rules for gift  
transfers, transfers from a decedent's estate, and  
transfers of borrowed securities, see Regulations section  
1.6045A-1.  
The date of grant or acquisition of the option, the  
amount of the premium paid or received, and any other  
information required to fully describe the option.  
For the transfer of a Section 1256 option on or after  
January 1, 2016, also provide the original basis of the  
option and the FMV of the option as of the end of the prior  
calendar year.  
Issuer Returns for Actions Affecting Basis  
An issuer of a specified security (defined later) that takes  
an organizational action that affects the basis of the  
security must file an issuer return on Form 8937. This  
applies to organizational actions after 2010 (after 2011 if  
the stock is in a regulated investment company, and after  
2013 for debt instruments, options, and securities futures  
contracts). The return is due on or before the 45th day  
following the organizational action or, if earlier, January 15  
of the next calendar year.  
The adjusted basis, original acquisition date, holding  
period adjustment, and the additional information for a  
debt instrument or option described above are not  
required if the transfer statement identifies the security as  
a noncovered security.  
If the names of the customer(s) for the transferring and  
receiving accounts are not the same, the transfer  
statement must also include the name of the customer(s)  
for the account to which the security is transferred.  
However, if the transfer is to or from an account for which  
a broker, custodian, or other person subject to the transfer  
reporting rules is the customer, the transfer statement  
must treat the beneficial owner or, if applicable, an agent  
substituted by an undisclosed beneficial owner, as the  
customer for both accounts, and the broker receiving the  
transfer statement should treat the security as held for the  
beneficial owner or the beneficial owner's agent  
An issuer is not required to file this return if, by the due  
date, the issuer posts the return with the required  
information in a readily accessible format in an area of its  
primary public website dedicated to this purpose and, for  
10 years, keeps the return accessible to the public on its  
primary public website or the primary public website of  
any successor organization. An issuer may electronically  
sign a return that is publicly reported on the issuer’s public  
website. The electronic signature must identify the  
individual who is signing the return.  
Effect on Form 1099-B and transfer statements. In  
preparing Form 1099-B or a transfer statement, you must  
take into account all the information reported by the issuer  
of the security on a statement that the issuer furnishes to  
you or is deemed to furnish to you, unless the issuer  
statement is incomplete or you know it is incorrect. Take  
into account only those organizational actions taken by  
the issuer of the security during the period you held  
custody of the security (beginning with the date on which  
you received a transferred security). If you receive or are  
deemed to receive an issuer statement after filing Form  
1099-B, you must file a corrected Form 1099-B within 30  
days of receiving the issuer statement. But you do not  
have to file a corrected Form 1099-B if you receive the  
issuer statement more than 3 years after you filed the  
original Form 1099-B. If you receive or are deemed to  
receive an issuer statement after furnishing a transfer  
statement for a covered security, you must furnish a  
corrected transfer statement within 15 days of receiving  
the issuer statement. But you do not have to furnish a  
corrected transfer statement if you receive the issuer  
statement more than 18 months after you furnished the  
original transfer statement.  
regardless of the customer listed for the broker's account.  
The person furnishing and the broker receiving the  
transfer statement can agree to combine the information  
in any format or to use a code in place of one or more  
required items. The transferor should determine the  
adjusted basis and other information to be reported as  
explained in these instructions. If the basis of the  
transferred security is determined using an average basis  
method, any securities acquired more than 5 years prior to  
the transfer may be reported on a single statement on  
which the original acquisition date is reported as “various,”  
but only if the other information reported applies to all the  
securities.  
Effect on Form 1099-B and other transfer statements.  
In preparing Form 1099-B or a transfer statement for  
securities you transfer to someone else, you must take  
into account all the information (other than securities  
classifications) reported on a transfer statement you  
receive, unless the statement is incomplete or you know it  
is incorrect. If you do not receive a required transfer  
statement by the due date, you must request one from the  
transferor. If a complete transfer statement is not  
furnished, either after you requested one or because no  
transfer statement was required, you may treat the  
security as noncovered. However, you must file a  
corrected Form 1099-B within 30 days of receiving a  
transfer statement indicating that the security is a covered  
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Instructions for Form 1099-B (2023)  
 
received one notice and you are not required to send a  
second “B” notice to the taxpayer on receipt of the second  
notice. See part N in the 2023 General Instructions for  
Certain Information Returns for more information.  
More information. For more information, see Form  
8937 and its instructions, and Regulations section  
1.6045B-1.  
Barter Exchanges  
For more information on the TIN Matching System  
A barter exchange is any person or organization with  
members or clients that contract with each other (or with  
the barter exchange) to jointly trade or barter property or  
services. The term does not include arrangements that  
provide solely for the informal exchange of similar  
services on a noncommercial basis. Persons who do not  
contract with a barter exchange but who trade services do  
not file Form 1099-B. However, they may have to file Form  
1099-MISC.  
offered by the IRS, see the 2023 General  
Instructions for Certain Information Returns.  
TIP  
CUSIP Number  
For transactional reporting by brokers, enter the CUSIP  
(Committee on Uniform Security Identification  
Procedures) number of the security or other applicable  
identifying number.  
Transactional/aggregate reporting. Barter exchanges  
involving noncorporate members or clients must report  
each transaction on a separate Form 1099-B.  
Account Number  
Transactions involving corporate members or clients of a  
barter exchange may be reported on an aggregate basis.  
The account number is required if you have multiple  
accounts for a recipient for whom you are filing more than  
one Form 1099-B. The account number is also required if  
you check the "FATCA filing requirement" checkbox. See  
FATCA Filing Requirement Checkbox below. Additionally,  
the IRS encourages you to designate an account number  
for all Forms 1099-B that you file. See part L in the 2023  
General Instructions for Certain Information Returns.  
Member information. In the recipient area of Form  
1099-B, enter information about the member or client that  
provided the property or services in the exchange.  
Exceptions. Barter exchanges are not required to file  
Form 1099-B for:  
1. Exchanges through a barter exchange having fewer  
than 100 transactions during the year,  
FATCA Filing Requirement Checkbox  
2. Exempt foreign persons as defined in Regulations  
section 1.6045-1(g)(1), or  
Check the box if you are a Foreign Financial Institution  
(FFI) reporting payments to a U.S. account pursuant to an  
election described in Regulations section 1.1471-4(d)(5)  
(i)(A). In addition, check the box if you are a U.S. payer  
that is reporting on Form 1099-B as part of satisfying your  
requirement to report with respect to a U.S. account for  
chapter 4 purposes as described in Regulations section  
1.1471-4(d)(2)(iii)(A).  
3. Exchanges involving property or services with an  
FMV of less than $1.00.  
Statements to Recipients  
If you are required to file Form 1099-B, you must provide a  
statement to the recipient. For more information about the  
requirement to furnish a statement to the recipient, see  
part M in the 2023 General Instructions for Certain  
Information Returns.  
Applicable Checkbox on Form 8949  
Use this box to enter a one-letter code that will assist the  
recipient in reporting the transaction on Form 8949 and/or  
Schedule D (Form 1040). Use the code below that applies  
to how the recipient will report the transaction.  
Code A. This code indicates a short-term transaction  
for which the cost or other basis is being reported to the  
IRS. Use this code to report a transaction that the  
recipient will report on Schedule D (Form 1040), line 1a,  
or on Form 8949 with box A checked with totals being  
carried to Schedule D (Form 1040), line 1b.  
Truncating recipient's TIN on payee statements.  
Pursuant to Regulations section 301.6109-4, all filers of  
this form may truncate a recipient’s TIN (social security  
number (SSN), individual taxpayer identification number  
(ITIN), adoption taxpayer identification number (ATIN), or  
employer identification number (EIN)) on payee  
statements. Truncation is not allowed on any documents  
the filer files with the IRS. A filer's TIN may not be  
truncated on any form. See part J in the 2023 General  
Instructions for Certain Information Returns.  
Code B. This code indicates a short-term transaction  
for which the cost or other basis is not being reported to  
the IRS. Use this code to report a transaction that the  
recipient will report on Form 8949 with box B checked with  
totals being carried to Schedule D (Form 1040), line 2.  
Code D. This code indicates a long-term transaction for  
which the cost or other basis is being reported to the IRS.  
Use this code to report a transaction that the recipient will  
report on Schedule D (Form 1040), line 8a, or on Form  
8949 with box D checked with totals being carried to  
Schedule D (Form 1040), line 8b.  
2nd TIN Not.  
You may enter an “X” in this box if you were notified by the  
IRS twice within 3 calendar years that the payee provided  
an incorrect TIN. If you mark this box, the IRS will not  
send you any further notices about this account.  
However, if you received both IRS notices in the same  
year, or if you received them in different years but they  
both related to information returns filed for the same year,  
do not check the box at this time. For purposes of the  
two-notices-in-3-years rule, you are considered to have  
Code E. This code indicates a long-term transaction for  
which the cost or other basis is not being reported to the  
Instructions for Form 1099-B (2023)  
-7-  
   
IRS. Use this code to report a transaction that the  
recipient will report on Form 8949 with box E checked,  
with totals being carried to Schedule D (Form 1040),  
line 9.  
Code X. Use this code to report a transaction if you  
cannot determine whether the recipient should check box  
B or box E on Form 8949 because the holding period is  
unknown.  
You must reduce the proceeds by commissions and  
transfer taxes related to the sale. For securities sold  
because of the exercise of an option granted or acquired  
before 2014, you may, but are not required to, take into  
account option premiums in determining gross proceeds if  
that is consistent with your books. For securities sold  
because of the exercise of an option granted after 2013 or  
for the treatment of an option granted or acquired after  
2013, see Regulations section 1.6045-1(m) for details.  
Box 1a. Description of Property  
If you reduce gross proceeds by option premiums,  
check the second box in box 6. Otherwise, check the first  
box.  
For stock and debt instruments, enter the issuer's name  
and the number of shares or units you held that were  
exchanged. For stock, also enter the class or classes of  
stock (for example, preferred, common, etc.) that were  
exchanged, whether for cash or other property.  
Abbreviate the class to fit the entry. For example, enter  
“C” for common stock, “P” for preferred, or “O” for other.  
Also abbreviate any subclasses. For a non-Section 1256  
option or securities futures contract, enter the name of the  
underlier and the number of shares or units covered by  
the contract.  
Do not include amounts shown in boxes 8 through 11.  
If identical stock is sold at separate times on the same  
calendar day by a single trade order and a single  
confirmation is given that reports to the customer an  
aggregate price or an average price per share, you can  
determine gross proceeds by averaging the proceeds for  
each share. However, do not do this if the customer  
notifies you in writing of an intent to determine the  
proceeds from the sale by the actual proceeds per share  
and you receive that notification by January 15 of the  
calendar year following the year of the sale. You may  
extend the January 15 deadline but not beyond the due  
date for filing Form 1099-B.  
For bartering transactions, describe the service or  
property provided.  
For regulated futures contracts and forward contracts,  
enter “RFC” or other appropriate description.  
Do not include any accrued qualified stated interest on  
bonds sold between payment dates (or on a payment  
date) in this box. Instead, report this accrued interest on  
Form 1099-INT.  
For Section 1256 option contracts, enter “Section 1256  
option” or other appropriate description.  
capital structure, earlier, for the information to enter in  
box 1a for that type of transaction.  
For reporting an acquisition of control or substantial  
change in capital structure, see Acquisition of control or  
Box 1b. Date Acquired  
Box 1e. Cost or Other Basis  
Enter the acquisition date of any securities sold. Leave  
this box blank if:  
Enter the adjusted basis of any securities sold unless the  
security is not a covered security and you check box 5. If  
you check box 5 and are not reporting basis, leave box 1e  
blank. Enter -0- in box 1e only if the securities sold  
actually had a basis of zero.  
The securities sold were acquired on a variety of dates,  
or  
You check box 5 and do not choose to complete  
box 1b.  
Covered security. A covered security is any of the  
For short sales, see Short sales of securities, earlier.  
following.  
Stock acquired for cash in an account after 2010,  
Box 1c. Date Sold or Disposed  
except stock for which the average basis method is  
available.  
For broker transactions, enter the trade date of the sale or  
exchange. For short sales, see Short sales of securities,  
earlier. For barter exchanges, enter the date that cash,  
property, a credit, or scrip is actually or constructively  
received.  
Stock for which the average basis method is available  
and that is acquired for cash in an account after 2011.  
A specified security transferred to an account if the  
broker or other custodian of the account receives a  
transfer statement (explained earlier) reporting the  
security as a covered security.  
Box 1d. Proceeds  
Certain debt instruments or options that are specified  
securities acquired for cash in an account after 2013. See  
Regulations section 1.6045-1(a)(15)(i)(C) and (E).  
Enter the gross cash proceeds from all dispositions  
(including short sales) of securities, commodities, options,  
securities futures contracts, or forward contracts. Show a  
loss, such as one from a closing transaction on a written  
option or forward contract, as a negative amount by  
enclosing it in parentheses.  
Certain debt instruments or options that are specified  
securities acquired for cash in an account after 2015. See  
Regulations sections 1.6045-1(a)(15)(i)(D) and  
1.6045-1(m)(2)(ii). This includes variable-rate debt  
instruments; inflation-indexed debt instruments;  
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Instructions for Form 1099-B (2023)  
   
contingent payment debt instruments; convertible debt  
instruments; options on debt instruments with payments  
denominated in, or determined by reference to, a currency  
other than the U.S. dollar; and options issued as part of  
investment units.  
A security that, when acquired, did not have to be  
reported on Form 1099-B because it was acquired from  
an exempt recipient or an exempt foreign person as  
defined in Regulations section 1.6045-1(g)(1).  
A security for which reporting is required by Regulations  
A securities futures contract entered into in an account  
section 1.6049-5(d)(3)(ii) (certain securities owned by a  
foreign intermediary or flow-through entity).  
after 2013.  
A security acquired due to a stock dividend, stock split,  
A debt instrument if the terms of the debt instrument are  
reorganization, redemption, stock conversion,  
recapitalization, corporate division, or other similar action,  
if the basis of the acquired security is determined from the  
basis of a covered security.  
not reasonably available to the broker within 90 days of  
the date the debt instrument was acquired by the  
customer and the debt instrument is either a debt  
instrument issued by a non-U.S. issuer or a tax-exempt  
obligation issued before January 1, 2014.  
Specified security. A specified security is any of the  
following.  
Identification of securities. If the customer has  
acquired securities on different dates or at different prices  
and sells less than the entire position in the security,  
report the sale according to the customer's adequate and  
timely identification of the security to be sold. If no  
identification is provided, report the sale in this order.  
Any share of stock (or any interest treated as stock,  
such as an American Depositary Receipt) in an entity  
organized as, or treated for federal tax purposes as, a  
corporation (foreign or domestic). For this purpose, a  
security classified as stock by the issuer is treated as  
stock. If the issuer has not classified the security, the  
security is not treated as stock unless the broker knows  
that the security is reasonably classified as stock under  
general federal tax principles.  
1. Any shares for which the acquisition date is  
unknown.  
2. The shares that were acquired first, whether they  
are covered or noncovered securities.  
Any debt instrument, other than a debt instrument  
subject to section 1272(a)(6) (certain interests in or  
mortgages held by a real estate mortgage investment  
conduit (REMIC), certain other debt instruments with  
payments subject to acceleration, and pools of debt  
instruments the yield on which may be affected by  
prepayments), or any short-term obligation. For this  
purpose, a security classified as debt by the issuer is  
treated as debt. If the issuer has not classified the  
security, the security is not treated as debt unless the  
broker knows that the security is reasonably classified as  
debt under general federal tax principles or that the  
instrument or position is treated as a debt instrument  
under a specific provision of the Internal Revenue Code.  
Average basis method. Generally, the average basis  
method is available for either of the following types of  
stock if the customer leaves the shares with a custodian  
or agent in an account and acquires identical shares of  
stock at different prices in the account.  
Stock in most mutual funds or other regulated  
investment companies.  
Stock acquired after 2010 in connection with a dividend  
reinvestment plan that meets the requirements of  
Regulations section 1.1012-1(e)(6).  
Compute basis using the average basis method if:  
The customer elects that method; or  
You choose the average basis method as your default  
Any option on one or more specified securities (which  
method, and the customer does not give you any other  
instructions.  
includes an index substantially all the components of  
which are specified securities), any option on financial  
attributes of specified securities, or a warrant or stock  
right.  
Generally, determine the average basis of a share of  
stock by dividing the aggregate basis of all shares of  
identical stock in an account by the total number of  
shares, regardless of holding period. However, for this  
purpose, shares of stock in a dividend reinvestment plan  
are not identical to shares of stock with the same CUSIP  
number that are not in a dividend reinvestment plan. The  
basis of each share of identical stock in the account is the  
aggregate basis of all shares of that stock in the account  
divided by the aggregate number of shares. Unless a  
single-account election is in effect, you may not average  
together the basis of identical stock held in separated  
accounts that is sold, exchanged, or otherwise disposed  
of after December 31, 2011. See Regulations section  
1.1012-1(e) for details.  
Adjusted basis. The adjusted basis begins with the  
initial basis (defined later) as of the date the security is  
acquired in an account.  
In reporting the adjusted basis, take into account all  
information, other than the classification of the security  
(such as stock), reported on a transfer statement or issuer  
return furnished to you or deemed furnished to you,  
Any securities futures contract.  
Noncovered security. A noncovered security is any  
security that is not a covered security.  
The following securities are not covered securities.  
Stock acquired in 2011 that was transferred in 2011 to a  
dividend reinvestment plan that meets the requirements of  
Regulations section 1.1012-1(e)(6). However, a covered  
security acquired in 2011 and transferred to a dividend  
reinvestment plan after 2011 remains a covered security.  
For purposes of this rule, stock is considered transferred  
to a dividend reinvestment plan if it is held in a plan that is  
not a dividend reinvestment plan and the plan amends its  
plan documents to become a dividend reinvestment plan.  
The stock is considered transferred as of the effective  
date of the plan amendments.  
A security acquired due to a stock dividend, stock split,  
reorganization, redemption, stock conversion,  
recapitalization, corporate division, or other similar action,  
if the basis of the acquired security is determined from the  
basis of a noncovered security.  
Instructions for Form 1099-B (2023)  
-9-  
 
unless that statement or return is incomplete or you know  
it is incorrect. See Transfer Statement and Issuer Returns  
for Actions Affecting Basis, earlier. Also, treat Form 2439  
as an issuer return and take into account the effects of  
undistributed capital gains reported to you on the form by  
a regulated investment company or real estate investment  
trust.  
You are not required to consider other transactions,  
elections, or events occurring outside the account when  
determining basis.  
You are also not required to apply section 1259  
(constructive sales), section 475 (mark-to-market method  
of accounting), section 1296 (mark-to-market method of  
accounting for marketable stock in a passive foreign  
investment company), and section 1092 (straddles).  
For a debt instrument, see Regulations sections  
1.6045-1(n)(7) and 1.6045-1(n)(11) for the rules to  
determine adjusted basis for a debt instrument acquired at  
a premium or discount.  
The initial basis depends on FMV as of the date of the  
gift and you neither know nor can readily ascertain this  
value.  
Short sales. In the case of a short sale, report the  
adjusted basis of the security delivered to close the short  
sale.  
Wash sales. If a customer acquired securities that  
caused a loss from a sale of other securities to be both  
nondeductible under section 1091 and the loss was  
reported as a wash sale adjustment on a Form 1099-B for  
the sale at a loss, increase the adjusted basis of the  
acquired securities by the amount of the disallowed loss.  
Corporate mergers. Report only the net reduction in  
basis between stock exchanged and stock received when  
reporting the payment of cash paid as part of a corporate  
merger, reorganization, or similar event that is taxable  
only to the extent that cash or property other than stock or  
securities (“boot”) is received and for which no loss can be  
recognized. Enter only the amount of the reduction  
attributable to the amount reported in box 1d. Enter the  
amount as a positive number. However, do not apply this  
rule, and instead report adjusted basis as described  
earlier, for any stock considered to have been redeemed  
or sold, for example, fractional shares of stock resulting  
from the merger that are only paid in cash.  
Initial basis. If a customer paid cash for a security, the  
initial basis is:  
1. The total cash paid by the customer or credited  
against the customer's account for the security, plus  
2. The commissions and transfer taxes to buy the  
security.  
Example. Your customer Adrian buys 100 shares of  
covered stock in MNO Corporation for $5,000 in February  
2023. MNO Corporation merges with PQR Corporation in  
December 2023. The merger is taxable only to the extent  
that boot is received. Adrian receives 100 shares of PQR  
stock with a value of $4,700 and $800 cash boot in  
exchange for his MNO stock. Adrian's resulting basis in  
the PQR stock is $4,700. Report the $800 cash boot in  
box 1d, and report $300 in box 1e to reflect the net  
reduction in basis from $5,000 (for the MNO stock) to  
$4,700 (for the PQR stock).  
You may, but do not have to:  
Take option premiums into account to determine the  
initial basis of securities acquired by exercising an option  
granted or acquired before 2014, or  
Increase initial basis for income recognized upon the  
exercise of a compensatory option or the vesting or  
exercise of other equity-based compensation  
arrangements granted or acquired before 2014.  
You cannot increase initial basis for income recognized  
upon the exercise of a compensatory option or the vesting  
or exercise of other equity-based compensation  
arrangements granted or acquired after 2013. For rules  
related to options granted or acquired after 2013, see  
Regulations section 1.6045-1(m).  
Box 1f. Accrued Market Discount  
Enter the amount of accrued market discount in box 1f.  
Box 1g. Wash Sale Loss Disallowed  
You must report the basis of identical stock by  
averaging the basis of each share if:  
Wash sales. Report wash sale loss amount disallowed.  
You must report any loss disallowed under section 1091 if  
both the sale and purchase transactions occur in the  
same account with respect to covered securities with the  
same CUSIP number. You are permitted, but are not  
required, to report in box 1g all loss disallowed under  
section 1091. For example, you may report a disallowed  
loss even though a security is sold in one account and  
repurchased in a different account. Increase the adjusted  
basis of the acquired securities by the amount of the  
disallowed loss reported in box 1g.  
The stock was purchased at separate times on the  
same calendar day in executing a single trade order, and  
The broker executing the trade provides a single  
confirmation to the customer that reports an aggregate  
total price or an average price per share.  
However, do not average the basis if the customer  
timely notifies you in writing of an intent to determine basis  
by the actual cost per share.  
The initial basis of a security transferred to an account  
is generally the basis reported on the transfer statement. If  
a transfer statement indicates that the security is acquired  
as a gift, you must apply the relevant basis rules for  
property acquired by gift in determining the initial basis,  
except you do not have to adjust the basis for gift tax.  
Treat the initial basis as equal to the gross proceeds from  
the sale if:  
You also do not have to apply the wash sale rules if:  
The purchased security is transferred to another  
account before the wash sale,  
The purchased security was purchased in another  
account and later transferred into the account from which  
securities were sold,  
The securities are treated as held in separate accounts,  
Neither gain nor loss is recognized because of the  
or  
basis rules for gift property, or  
-10-  
Instructions for Form 1099-B (2023)  
 
The customer has notified you in writing (including in an  
You are not required to consider other transactions,  
elections, or events occurring outside the account when  
determining whether the gain or loss on the sale is  
short-term or long-term. You are also not required to apply  
holding period-related adjustments under section 1259  
(constructive sales), 475 (mark-to-market method of  
accounting), 1092 (straddles), 1233(b)(2) (short sales),  
1296 (mark-to-market method of accounting for  
marketable stock in a passive foreign investment  
company), 852(b)(4)(A), 857(b)(8), 852(b)(4)(B)  
(regulated investment company and real estate  
investment trust adjustments), and Regulations section  
1.1221-2(b) (hedging transactions).  
electronic format) that they have made a valid and timely  
mark-to-market election under section 475 and identify  
the account from which the securities were sold as  
containing only securities subject to the election.  
For more details, see Regulations section 1.6045-1(d)  
(6)(iii).  
Example. Your customer Alex buys 100 shares for  
$1,000 in September 2023. In October 2023, he sells  
them for $600. Within 30 days of the sale, he buys 75  
shares with the same CUSIP number in the same  
account. Since his loss is $400 ($1,000 minus $600) but  
the loss on 75 shares is disallowed, his disallowed loss is  
$300. Report the $600 gross proceeds from the sale in  
box 1d, $1,000 basis in box 1e, and $300 wash sale loss  
disallowed in box 1g. The $300 in disallowed loss is  
added to his basis in the newly purchased 75 shares.  
Box 3. Check if Proceeds Are From Collectibles or  
From a QOF  
Check the “Collectibles” box if the proceeds you are  
reporting in box 1d are from a transaction involving  
collectibles. Check the “QOF” box if you are reporting a  
disposition of an interest in a QOF.  
Box 2. Type of Gain or Loss  
Determine whether the gain or loss is short-term or  
long-term under section 1222, and whether any portion of  
the gain or loss is ordinary. In making the determination,  
you must do the following.  
Box 4. Federal Income Tax Withheld  
Enter backup withholding. For example, persons who  
have not furnished their TIN to you in the manner required  
are subject to withholding on certain amounts required to  
be reported on this form. This is called backup  
withholding. For more information on backup withholding,  
including the rate, see part N in the 2023 General  
Instructions for Certain Information Returns and go to  
Consider any information reported on a transfer  
statement.  
Consider any information reported on Form 8937.  
Apply the rules for stock acquired from a decedent.  
Apply the rules for stock acquired as a gift.  
If a customer acquired securities that caused a loss  
from a sale of other securities to be both nondeductible  
under section 1091 and reported in box 5 of a 2013 or  
earlier Form 1099-B (or reported on a 2014 or 2015 Form  
1099-B with code W in box 1f and an adjustment amount  
in box 1g), use the rules in section 1223(3) to determine  
the holding period of the acquired securities.  
Use Form W-9 to request the TIN of the recipient. For  
foreign recipients, request the recipient complete the  
appropriate Form W-8. See the Instructions for the  
Requester of Forms W-8BEN, W-8BEN-E, W-8ECI,  
W-8EXP, and W-8IMY.  
In the case of a short sale, report whether any gain or  
loss on the closing of the short sale is short-term or  
long-term based on the acquisition date of the security  
delivered to close the short sale. Apply the rule in section  
1233(d), if applicable.  
Box 5. Check if a Noncovered Security  
You may check the box if reporting the sale of a  
noncovered security. Do not check this box if reporting the  
sale of a covered security.  
Except as provided below, in addition to checking the  
applicable short-term or long-term box, you are required  
to check the “Ordinary” checkbox if all or a portion of the  
gain or loss may be ordinary. You may not report both  
short-term and long-term gain or loss on the same Form  
1099-B.  
If you check this box, you do not have to complete  
boxes 1b, 1e, 1f, 1g, and 2, and you do not have to check  
box 12. If you check box 5 and choose to complete boxes  
1b, 1e, 1f, 1g, and 2, you are not subject to penalties  
under section 6721 or 6722 for failure to report boxes 1b,  
1e, 1f, 1g, and 2 correctly. If you do not check box 5, you  
are subject to penalties under sections 6721 and 6722 for  
failure to report boxes 1b, 1e, 1f, 1g, and 2 correctly even  
if you are reporting the sale of a noncovered security.  
For transactions that are denominated in a currency  
other than the U.S. dollar, brokers must check the  
"Ordinary" checkbox because these transactions may be  
section 988 transactions to the customer. Because a  
customer may make an election to treat gains and losses  
on certain section 988 transactions as capital, the broker  
must also check the short-term or long-term box to  
indicate whether any portion of the gain or loss may be  
short-term or long-term. Brokers are not required to check  
the “Ordinary” checkbox if the security is a market  
discount bond or passive foreign investment company  
stock. Brokers are required to check the “Ordinary”  
checkbox if the security is a contingent payment debt  
instrument subject to the noncontingent bond method.  
Box 6. Reported to IRS  
See Box 1d. Proceeds, earlier.  
Instructions for Form 1099-B (2023)  
-11-  
option contracts. Use boxes 8, 9, and 10 to figure the  
aggregate profit or (loss).  
Box 7. Check if Loss Not Allowed Based on  
Amount in Box 1d  
structure, earlier.  
Box 12. Check if Basis Reported to IRS  
Check this box if:  
Regulated Futures Contracts, Foreign Currency  
Contracts, and Section 1256 Option Contracts  
(Boxes 8 Through 11)—Brokers Only  
You are not checking box 5, or  
You are checking box 5 but are reporting basis to the  
IRS in box 1e anyway.  
If you complete boxes 8 through 11, do not complete any  
other numbered box except box 1a and, if applicable,  
box 4. Also, do not complete the “Applicable checkbox on  
Form 8949” box.  
Box 13. Bartering  
Enter the gross amounts received by a member or client  
of a barter exchange. This includes cash received, the  
FMV of any property or services received, and the FMV of  
any trade credits or scrip credited to the member's or  
client's account. However, do not include amounts  
received by a member or client in a subsequent exchange  
of credits or scrip. Do not report negative amounts.  
Box 8. Profit or (Loss) Realized in 2023 on Closed  
Contracts  
Enter the profit or (loss) realized by the customer on  
closed regulated futures, foreign currency, or Section  
1256 option contracts in 2023.  
Boxes 14 Through 16. State Information  
Box 9. Unrealized Profit or (Loss) on Open  
Contracts—12/31/2022  
These boxes may be used by filers who participate in the  
Combined Federal/State Filing Program and/or who are  
required to file paper copies of this form with a state tax  
department. See Pub. 1220 for more information  
Enter the unrealized profit or (loss) on open regulated  
futures, foreign currency, or Section 1256 option contracts  
at the end of 2022. Do not include amounts related to  
contracts that were open on December 31, 2022, and  
were transferred to another broker during 2023.  
regarding the Combined Federal/State Filing Program.  
They are provided for your convenience only and need  
not be completed for the IRS. Use the state information  
boxes to report payments for up to two states. Keep the  
information for each state separated by the dash line. If  
you withheld state income tax on this payment, you may  
enter it in box 16. In box 14, enter the abbreviated name of  
the state. In box 15, enter the filer's state identification  
number. The state number is the filer's identification  
number assigned by the individual state.  
Box 10. Unrealized Profit or (Loss) on Open  
Contracts—12/31/2023  
Enter the unrealized profit or (loss) on open regulated  
futures, foreign currency, or Section 1256 option contracts  
at the end of 2023.  
If a state tax department requires that you send them a  
paper copy of this form, use Copy 1 to provide information  
to the state tax department. Give Copy 2 to the payee for  
use in filing the payee's state income tax return.  
Box 11. Aggregate Profit or (Loss) on Contracts  
Enter the aggregate profit or (loss) for the year from  
regulated futures, foreign currency, or Section 1256  
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Instructions for Form 1099-B (2023)