Information about Investment Sales on Form 1099-B

Your broker, mutual fund company or other financial institution will send this form to report sale of stocks, mutual funds, bonds and other securities. It comes either as a single form or part of a consolidated tax statement with other financial and/or tax information, such as dividends and interest received. Officially, the form is titled Proceeds from Broker and Barter Exchange Transactions.

Form 1099-B shows the details of each sale.

IMPORTANT: Starting with 2011, the form has new boxes so the IRS can collect cost basis information as required by a recent federal law.

As before, you will see information on the form for the name of the security you sold, the date of the sale, the proceeds and any federal tax withheld. Now as you enter your sales information, you could be asked to enter information related to new fields on the form: cost basis, covered or noncovered security and cost basis reported to the IRS, depending on your situation.

NOTE: Your broker will report this information on either a Form 1099-B or consolidated year-end statement. For more information on the 2011 changes, please see Why Does TurboTax Ask about My Year-End Broker Statement?

TurboTax Basic, Deluxe, or Premier

1. Select the Federal Taxes tab, then select Wages & Income.
2. Scroll down the page until you see a category called Investment Income, shown below.
3. In the Your Income screen, select Investment Income, then select the Start or Revisit button for the type of investment you sold.
4. Follow the on-screen instructions.

TurboTax Home & Business

1. Select the Personal tab, then select Personal Income.
2. In the Your Personal Income screen, select Investment Income, then select the Start or Revisit button for the type of investment you sold.
3. Follow the on-screen instructions.