Instructions For Form 1099-B - 2018 (Page 4 of 11) in pdf

3. Sales by custodians and trustees, provided the sale

results in almost immediate delivery of a commodity. A

is reported on a properly filed Form 1041, U.S. Income

forward sale is a sale under a forward contract. However,

Tax Return for Estates and Trusts.

sales and exchanges of timber for lump-sum payments

must be reported on Form 1099-S, Proceeds From Real

4. Sales of shares in a regulated investment company

Estate Transactions.

that is a money market fund.

Report sales of agricultural commodities under a

5. Obligor payments on the following.

regulated futures contract, sales of derivative interests in

a. Nontransferable obligations, such as savings bonds

agricultural commodities, and sales of receipts for

or CDs.

agricultural commodities issued by a designated

b. Obligations for which gross proceeds are reported

warehouse on Form 1099-B. A designated warehouse is a

on other Forms 1099, such as stripped coupons issued

warehouse, depository, or other similar entity designated

before July 1, 1982.

by a commodity exchange in which or out of which a

particular type of agricultural commodity is deliverable to

c. Callable demand obligations issued before January

satisfy a regulated futures contract. Sales of warehouse

1, 2014, that have no premium or discount.

receipts issued by any other warehouse are not

6. Sales of foreign currency unless under a forward or

reportable.

regulated futures contract that requires delivery of foreign

Sales of precious metals. A sale of a precious metal

currency.

(gold, silver, platinum, or palladium) in any form for which

7. Sales of fractional shares of stock if gross proceeds

the Commodity Futures Trading Commission (CFTC) has

are less than $20.

not approved trading by regulated futures contract (RFC)

8. Retirements of book-entry or registered form

is not reportable. Further, even if the sale is of a precious

obligations issued before January 1, 2014, if no interim

metal in a form for which the CFTC has approved trading

transfers have occurred.

by RFC, the sale is not reportable if the quantity, by weight

or by number of items, is less than the minimum required

9. Sales for exempt foreign persons as defined in

quantity to satisfy a CFTC-approved RFC.

Regulations section 1.6045-1(g)(1).

For example, a broker selling a single gold coin does

10. Sales of Commodity Credit Corporation certificates.

not need to file Form 1099-B even if the coin is of such

11. Spot or forward sales of agricultural commodities.

form and quality that it could be delivered to satisfy a

See

Spot or forward sales of agricultural

commodities,

CFTC-approved RFC if all CFTC-approved contracts for

later.

gold coins currently call for delivery of at least 25 coins.

12. Some sales of precious metals. See

Sales of

Sales of precious metals for a single customer during a

precious

metals, later.

24-hour period must be aggregated and treated as a

13. Grants or purchases of options, purchases due to

single sale to determine if this exception applies. This

exercises of call options, or entering into contracts that

exception does not apply if the broker knows or has

require delivery of personal property or an interest therein.

reason to know that a customer, either alone or with a

14. Sales (including retirements) of short-term

related person, is engaging in sales to avoid information

obligations issued on or after January 1, 2014. However, a

reporting.

broker may be required to file a Form 1099-INT for interest

Exemption certificate. A broker may require an exempt

or original issue discount on a short-term obligation.

recipient to file a properly completed Form W-9, Request

Identifying a corporation. For sales of covered

for Taxpayer Identification Number and Certification, or

securities (defined later) that were acquired after 2011,

similar form. A broker may treat an exempt recipient that

you cannot rely on Regulations section 1.6049-4(c)(1)(ii)

fails to do so as a recipient that is not exempt. See part J

(A) to tell whether a customer is a corporation. However,

in the 2018 General Instructions for Certain Information

for sales of all securities, you can treat a customer as an

Returns for more information.

exempt recipient if one of the following statements is true.

Transfer Statement

1. The name of the customer contains the term

“insurance company,” “indemnity company,” “reinsurance

Any person that transfers custody of a specified security

company,” or “assurance company.”

(defined later) to a broker after 2010 (after 2011 if the

2. The name of the customer indicates it is an entity

stock is in a regulated investment company, and after

listed as a per se corporation under Regulations section

2014 for certain debt instruments, options, and securities

301.7701-2(b)(8)(i).

futures contracts) must give the broker a written transfer

statement within 15 days after the date of settlement for

3. You receive a properly completed exemption

the transfer.

certificate on Form W-9 that shows the customer is not an

S corporation.

The transferor must furnish a separate statement for

4. You receive a Form W-8 that includes a certification

each security and, if transferring custody of the same

that the person whose name is on the form is a foreign

security acquired on different dates or at different prices,

corporation.

for each acquisition. However, a separate statement is not

required for:

Spot or forward sales of agricultural commodities.

Noncovered securities, and

Agricultural commodities include grain, feed, livestock,

meat, oil seed, timber, and fiber. A spot sale is a sale that

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Instructions for Form 1099-B (2018)

Instructions For Form 1099-B - 2018 Page 4

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