Received a Form 1099-B? Don't panic! This little piece of paper is simply a summary of your sales of stocks, bonds, mutual funds, and other securities throughout the year. Think of it as your investment sales report card.
Essentially, the 1099-B reports the gross proceeds from these sales to both you and the IRS. Key information includes the date of sale, the description of the security, and the gross proceeds. You'll need this information to accurately calculate your capital gains or losses when filing your taxes.
Pay close attention to the 'cost basis' reported on the form. This is what you originally paid for the investment. If the cost basis is missing or incorrect, it's crucial to track down the correct information. Your broker or financial institution might be able to help. Remember, accurately reporting your investment sales is key to avoiding tax issues. So, keep that 1099-B handy and happy tax season!
