Instructions For Form 1099-B - 2018 (Page 5 of 11) in pdf

Securities acquired more than 5 years before the

For all option transfers, the date of grant or acquisition

transfer for which basis is determined using an average

of the option, the amount of the premium paid or received,

basis method.

and any other information required to fully describe the

option. For the transfer of a Section 1256 option on or

after January 1, 2016, also provide the original basis of

These rules apply to:

the option and the FMV of the option as of the end of the

Any broker,

prior calendar year.

Anyone that acts as a custodian of securities in the

ordinary course of a trade or business,

The adjusted basis, original acquisition date, holding

Any issuer of securities,

period adjustment, and the additional information for a

Any trustee or custodian of an individual retirement

debt instrument or option described above are not

plan, or

required if the transfer statement identifies the security as

Any agent of the above.

a noncovered security.

If the names of the customer(s) for the transferring and

These rules do not apply to:

receiving accounts are not the same, the transfer

The beneficial owner of a security or any agent

statement must also include the name of the customer(s)

substituted for an undisclosed beneficial owner,

for the account to which the security is transferred.

Any governmental unit or any agency or instrumentality

However, if the transfer is to or from an account for which

of a governmental unit holding escheated securities, or

a broker, custodian, or other person subject to the transfer

Any organization that holds and transfers obligations

reporting rules is the customer, the transfer statement

among members as a service to its members.

must treat the beneficial owner or, if applicable, an agent

substituted by an undisclosed beneficial owner, as the

Information required. Each transfer statement must

customer for both accounts, and the broker receiving the

include:

transfer statement should treat the security as held for the

Date the statement is furnished;

beneficial owner or the beneficial owner's agent

Name, address, and telephone number of the person

regardless of the customer listed for the broker's account.

furnishing the statement;

Name, address, and telephone number of the broker

The person furnishing and the broker receiving the

receiving custody of the security;

transfer statement can agree to combine the information

Name of the customer(s) for the account from which the

in any format or to use a code in place of one or more

security is transferred;

required items. The transferor should determine the

Account number for the transferring account and, if

adjusted basis and other information to be reported as

different, the receiving account;

explained in these instructions. If the basis of the

CUSIP or other security identifier number of the

transferred security is determined using an average basis

transferred security;

method, any securities acquired more than 5 years prior to

Number of shares or units;

the transfer may be reported on a single statement on

Type of security (such as stock, debt instrument, or

which the original acquisition date is reported as “various,”

option);

but only if the other information reported applies to all the

Date the transfer was initiated and settlement date of

securities.

the transfer (if known); and

Effect on Form 1099-B and other transfer statements.

The security's total adjusted basis, original acquisition

In preparing Form 1099-B or a transfer statement for

date, and, if applicable, the holding period adjustment

securities you transfer to someone else, you must take

under section 1091.

into account all the information (other than securities

For a debt instrument, the following additional

classifications) reported on a transfer statement you

information is required.

receive, unless the statement is incomplete or you know it

A description of the payment terms used by the broker

is incorrect. If you do not receive a required transfer

to compute any basis adjustments under Regulations

statement by the due date, you must request one from the

section 1.6045-1(n).

transferor. If a complete transfer statement is not

The issue price.

furnished, either after you requested one or because no

The issue date, if different from the original acquisition

transfer statement was required, you may treat the

date.

security as noncovered. However, you must file a

The adjusted issue price as of the transfer date.

corrected Form 1099-B within 30 days of receiving a

The initial basis.

transfer statement indicating that the security is a covered

Any market discount that has accrued as of the transfer

security. But you do not have to file a corrected Form

date.

1099-B if you receive the statement more than 3 years

Any bond premium that has been amortized as of the

after you filed the original Form 1099-B. You must also

transfer date.

furnish a corrected transfer statement within 15 days of

Any acquisition premium that has been amortized as of

receiving a transfer statement indicating that a security is

the transfer date.

a covered security if you transferred the security

Whether the transferring broker has computed any of

transferred to you. But you do not have to furnish a

the information by taking into account one or more

corrected transfer statement if you receive the transfer

elections under Regulations section 1.6045-1(n).

statement more than 18 months after you furnished your

The last date on or before the transfer date that the

transfer statement.

broker made an adjustment for a particular item relating to

a debt instrument transferred on or after January 1, 2016.

-5-

Instructions for Form 1099-B (2018)

Instructions For Form 1099-B - 2018 Page 5

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