Introduction

Definitions:

Form 1099-B is received by seller of Securities when he sold securities for cash. 1
a. For Stocks sold
b. For bonds
c. For short sales
d. For commodities
e. For futures regulated contracts
f. For Foreign currency contracts
g. For forward contracts
h. For debt instruments, etc

Brokers is any person who, in the ordinary course of a trade or business, stands re

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 Introduction

e sold securities for cash. 1099-B is issued by Broker for the following purposes:

trade or business, stands ready to effect sales to be made by others.

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Types Of Source Document For 1099-B
1 Organizer Page
2 1099-B
3 Handwritten Information
4 Typed Information/Printed Income Summary

1 Organizer Page

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2 1099-B

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Box Description Explanation

1a Date of sale This the date when we sale or e

1b Cusip No. CUSIP – Committee on Uniform S

2 Stocks Bonds Gross Proceeds The aggregate gross proceeds f

3 Bartering The gross amounts received by

4 Federal Income Tax Withheld Tax withheld

5 No. of shares exchanged No of shares were exchanged by

6 Classes of stock exchanged Classes of stock (For example, p

7 Description Name of securities which is sold

8 Profit or loss realized in 2006 The profit or (loss) realized by t

9 Unrealized profit or loss on 12/31/05 The unrealized profit or (loss) o

10 Unrealized profit or loss on 12/31/06 The unrealized profit or (loss) o

11 Aggregate Profit The aggregate profit or (loss) fo

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2 1099-B

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ate when we sale or exchange the securities

mmittee on Uniform Security Identification Procedures

gate gross proceeds from all dispositions of securities (including short sales), commodities

amounts received by a member or client of a barter exchange.

es were exchanged by a shareholder

stock (For example, preferred, common etc)

ecurities which is sold by shareholder

or (loss) realized by the customer on closed regulated futures or foreign currency contract

lized profit or (loss) on open regulated futures or foreign currency contracts at the end of 2

lized profit or (loss) on open regulated futures or foreign currency contracts at the end of 2

gate profit or (loss) for the year from regulated futures or foreign currency contracts

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hort sales), commodities, or forward contracts.

oreign currency contracts in 2006.

contracts at the end of 2005

contracts at the end of 2006

currency contracts

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 Input output
Input Screens in Tax Softwares
1 D1

Box Description Input Screen

1a Date of sale D-1
1b Cusip No. N/A
2 Stocks Bonds Gross Proceeds D-1
3 Bartering
4 Federal Income Tax Withheld D-1
5 No. of shares exchanged D-1
6 Classes of stock exchanged
7 Description D-1
8 Profit or loss realized in 2006
9 Unrealized profit or loss on 12/31/05
10 Unrealized profit or loss on 12/31/06
11 Aggregate Profit

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 Input output

Box Output
101 No Effect
N/A N/A
102 Schedule D
N/A
105 Form 1040, Line 64
30 Schedule D Line 1 as Description
N/A
30 Schedule D Line 1 as Description

It is a future
contract like
options

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