Amount Realized – Form 1099-B

 

This is the amount you receive when you sell an asset. Your broker or mutual fund company will send you a Form 1099-B or a substitute statement. The document will list the sales price of mutual fund and stock shares you sold during the year. By law, your broker or mutual fund company must send you a 1099-B by Feb. 15, 2022.

The amount shown on the 1099-B is the total amount you enter on your return for that particular sale. The IRS checks to see if the amount you reported is the same as what your broker or mutual fund company reported.

Most 1099-Bs report the net sales price. This is the gross amount minus commissions and other expenses. Your broker or mutual fund company will tell you on the form if the amount reported is the gross sales price or the net sales price. The gross sales price includes commissions and other expenses.

If your 1099-B reports the gross sales price, you should:

  1. Enter the amount on the form.
  2. Adjust the mutual fund’s cost by adding to it the sales commissions or expenses you paid.

Related Topics

Related Resources

Top IRS Audit Triggers: Nine Tax Mistakes to Avoid

What triggers the IRS to audit a tax return? Learn how common tax mistakes and errors can be a red flag and affect your chances of being audited by the IRS.

What are the current tax rates?

Find the current percentages for federal income tax rates, capital gains tax rates, Social Security tax rates and more from the tax experts at H&R Block.

The Complete Guide to the W-2 Form

The key to understanding your w-2 form is decoding the boxes and numbers. Learn how to read your w-2 form with this box-by-box infographic from H&R Block.

Form 8863

The tax experts at H&R Block outline how students and parents can file Form 8863 and document qualified expenses. Read about Form 8863 here.