Date of Sale or Exchange

The stockbroker reports the date the stock was sold in box 1a of Form 1099-B. If the securities were noncovered securities, use this date, along with the purchase date provided by the taxpayer, to determine the holding period. If the securities sold were covered securities, the stockbroker reports on Form 1099-B, box 1b, the date the stock was acquired, and in box 8, whether the gain was short-term or long-term.

Sales Price

The stockbroker reports the sales price of stock shares in box 2 of Form 1099-B and indicates if the amount is the sales price (gross proceeds) or sales price less commissions and option premiums (net proceeds).

• If sales price (gross proceeds) is checked, ask the taxpayer for the amount of commissions/fees paid and add it to the taxpayer's basis
• If sales price less commissions and option premiums (net proceeds) is checked, the broker already subtracted the commissions and fees from the proceeds

Add the broker's commissions and fees to the basis before entering the amount on the Capital Gain or Loss Transactions Worksheet.