How to Report 1099-A and 1099-B Data on Your Tax Return

What to Do With Forms 1099-A and 1099-B at Tax Time

Man signing tax form, detail
Anne Rippy/ The Image Bank/ Getty Images

Form 1099 refers to a whole family of tax documents, and each type of 1099 reports various types of income that an individual person might receive during the year. Each form is related to a specific type of income from payments received by an independent contractor to interest received from investments. Each is subject to somewhat different rules. 

Here's the breakdown of Forms 1099-A and 1099-B and what you should do with each of them come tax time if you receive either.

Form 1099-A

FORM 1099-A

TYPE OF INCOME

WHAT TO DO WITH IT

Reports the abandonment of property that was secured by a loan.

Report this data either on Form 4797 or Form 8949 with the net capital gain or loss carried over to Schedule D and Form 1040.

WHO FILES IT

Banks, financial institutions, and businesses who acquire property in full or partial satisfaction of a debt secured by that property must issue Form 1099-A to the borrower taxpayer and forward a copy to the Internal Revenue Service.

WHO RECEIVES IT

Borrowers who defaulted on their loans during the tax year and who gave up or relinquished the property that was securing the debt in exchange for full or partial satisfaction of the loan. This 1099 represents "forgiven" debt.

INSTRUCTIONS

Instructions for Forms 1099-A and 1099-Chttps://www.irs.gov/instructions/i1099ac/index.html
General Instructions for Certain Information Returnshttps://www.irs.gov/pub/irs-pdf/i1099gi.pdf

BLANK FORM

Form 1099-A, Acquisition or abandonment of secured propertyhttps://www.irs.gov/pub/irs-pdf/f1099a.pdf

PUBLICATIONS

Pub. 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonmentshttps://www.irs.gov/pub/irs-pdf/p4681.pdf

DEADLINES

January 31, 2018, to furnish to the borrowerFebruary 28, 2018, to file with the IRS

PENALTIES FOR LATE FILING (PAYABLE BY THE INSTITUTION) 

Penalties increase as more and more time passes after the deadlines.

 

TABLE B.

FORM 1099-B

TYPE OF INCOME

WHAT TO DO WITH IT

Sales price of stocks and bonds in box 1d, of cost or another basis in box 1e, and adjustments in box 1g

Form 8949 or Schedule D, whichever applies; See the Instructions for Form 8949

Aggregate profit or (loss) on contracts (box 11)

Form 6781, line 1

Bartering (box 13)

See Publication 525

WHO FILES IT

Brokerage and investment firms

WHO RECEIVES IT

Investors in stocks, bonds, mutual funds, and other types of securities.

INSTRUCTIONS

General Instructions for Certain Information Returns

https://www.irs.gov/pub/irs-pdf/i1099gi.pdf

Instructions for Form 1099-B

https://www.irs.gov/pub/irs-pdf/i1099b.pdf

Instructions for Form 8949

https://www.irs.gov/pub/irs-pdf/i8949.pdf

Instructions for Schedule D

https://www.irs.gov/pub/irs-pdf/i1040sd.pdf

Instructions for Form 4797

https://www.irs.gov/pub/irs-pdf/i4797.pdf

BLANK FORM

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

https://www.irs.gov/pub/irs-pdf/f1099b.pdf

PUBLICATIONS

Pub. 550, Investment Income and Expenses

https://www.irs.gov/pub/irs-pdf/p550.pdf

Pub. 554, Sales and Other Dispositions of Assets

https://www.irs.gov/pub/irs-pdf/p544.pdf

Pub. 525, Taxable and Nontaxable Income

https://www.irs.gov/pub/irs-pdf/p525.pdf

DEADLINES

February 15, 2018, to furnish to the borrower

February 28 to file with the IRS

PENALTIES FOR LATE FILING (PAYABLE BY THE INSTITUTION)

Penalties increase as more and more time passes after the deadlines.

Note: Always consult with a tax professional for the most up-to-date information and trends. Tax laws and rules can change periodically. This article is not tax advice and it is not intended as tax advice.