What are 1099b Forms

What Is a 1099-B Form?

A 1099-B form, titled “Proceeds From Broker and Barter Exchange Transactions,” is issued by the IRS. It reports profits or losses from transactions like the sale or purchase of precious metals or stocks.

This form requires detailed information, including:

• Name and address of payer
• Payer’s tax ID number
• Name and address of recipient
• Recipient’s account number
• Description of the property
• Date acquired
• Date sold
• Proceeds from the sale
• Cost or other basis
• Type of gain or loss (short-term or long-term)
• Federal income tax withheld
• Profit or loss on closed contracts
• Unrealized profit or loss on open contracts
• Aggregate profit or loss on contracts
• CUSIP number (for identifying securities)

These forms are issued by brokers, dealers, and other institutions as required by the IRS.

According to the IRS, a broker or barter exchange must file a 1099-B form for any person who:

• Sells commodities, stocks, foreign currency contracts, forward contracts, debt instruments, regulated futures contracts, or security futures contracts for cash.
• Receives cash, property, or stock from a corporation that has undergone a capital structure change or acquisition (reported on form 8806).

Brokers must also file a 1099-B for anyone who exchanges property or services through a barter exchange. Some transactions are reported individually, while others are reported in aggregate. Separate forms are needed for each type of security.

Who Is Considered a Broker?

The IRS defines a broker as anyone who facilitates sales on behalf of others as part of their business. This can include individuals, foreign entities, government units, or their subsidiaries. Corporations redeeming their own shares or issuers retiring their own debt obligations also fall under this category.

Reportable Silver & Gold Bullion Transactions

Bullion dealers like Scottsdale Mint are required to report specific bullion purchases and sales, such as:

• Gold bars with a purity of at least .995 and a weight of 1 kilo (32.15 troy ounces) or more.
• Silver bars with a purity of at least .999 and a weight of 1,000 troy ounces or more.
• Platinum bars with a purity of at least .9995 and a weight of 25 troy ounces or more.
• Palladium bars with a purity of at least .9995 and a weight of 100 troy ounces or more.
• Sales of 1 oz Gold Krugerrands, Gold Maple Leafs, and Mexican Onzas must be reported if more than 25 coins are sold.
• U.S. coins made of 90% silver must be reported if their total face value exceeds $1,000.

Dealers are also required to report purchases involving:

• Cash transactions over $10,000.
• A series of cash transactions exceeding $10,000 in total.

For more details on 1099-B and its application to bullion transactions, visit our Reportable Bullion Transactions or the IRS website, which provides guidelines on the form and when it is required.

This information is intended as a guide, not tax advice. For specific tax questions, consult a CPA or tax professional.

All market updates are third-party analyses and do not necessarily reflect the views of Scottsdale Mint. They should not be considered financial advice.