Things You'll Need:
- Your 1099-B forms
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Step 1
Box 1a of the form 1099-B shows the trade date of the transaction. If multiple transactions occurred, then no date will be shown. For example, if you take a systematic withdrawal from a mutual fund, then no date will be shown.
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Step 2
Box 1b will show the CUSIP number for brokerage transactions. This number is a tracking number that allows regulatory authorities to identify securities and has no real bearing on your taxes.
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Step 3
Box 2 can be considered the "main" box on the form. This box shows the aggregate proceeds of all sales that you made with the issuer of the form. For example, a brokerage firm that you trade with will send you a 1099-B that shows the aggregate proceeds of all of your investment sales for the year.
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Step 4
Box 3 is seldom used and will therefore be skipped. Box 4 shows any federal income tax that was withheld from your sales and must be carried to your 1040 form accordingly.
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Step 5
Boxes 5, 6 and 7 show such information as share class, number of shares and a description of the security sold. These boxes are often left empty on the 1099-B.
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Step 6
Boxes 8 to 11 deal with commodities futures contracts, only, and can otherwise be ignored.
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Step 7
The important thing to remember about reporting capital gains is knowing whether the gains posted are long (over 1 year) or short-term gains. Most 1099-Bs will break this down for you. A more difficult task is finding the cost basis for each of your investment sales, so that gain or loss can be computed. For this reason, it is important to retain accurate and detailed records of all of your investment and brokerage accounts.
