Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Capital Gain or Loss

Holding Period

Holding Period and Proceeds

The dates the stock was purchased and sold are needed to determine the holding period. Form 1099 may show the date the stock was sold but may not provide the purchase date.

For purchases prior to 2011, taxpayers must provide this information. Beginning in 2011, brokers must report the date of acquisition and whether the gain or loss is short-term or long-term on Form 1099-B, unless the securities sold were noncovered securities. Taxpayers will continue to provide the information for noncovered securities not reported on Form 1099-B.

Brokers report the proceeds from the sale (the sales price of the stock) on Form 1099-B, or a consolidated reporting statement:

  • Form 1099-B reflects gross or net proceeds for a stock
  • Form 1099-S usually reflects gross proceeds