Instructions For Form 1099-B - 2018 (Page 8 of 11) in pdf

aggregate price or an average price per share, you can

stock. If the issuer has not classified the security, the

determine gross proceeds by averaging the proceeds for

security is not treated as stock unless the broker knows

each share. However, do not do this if the customer

that the security is reasonably classified as stock under

notifies you in writing of an intent to determine the

general federal tax principles.

proceeds from the sale by the actual proceeds per share

Any debt instrument, other than a debt instrument

and you receive that notification by January 15 of the

subject to section 1272(a)(6) (certain interests in or

calendar year following the year of the sale. You may

mortgages held by a REMIC, certain other debt

extend the January 15 deadline but not beyond the due

instruments with payments subject to acceleration, and

date for filing Form 1099-B.

pools of debt instruments the yield on which may be

affected by prepayments), or any short-term obligation.

Do not include any accrued qualified stated interest on

For this purpose, a security classified as debt by the

bonds sold between payment dates (or on a payment

issuer is treated as debt. If the issuer has not classified

date) in this box. Instead, report this accrued interest on

the security, the security is not treated as debt unless the

Form 1099-INT.

broker knows that the security is reasonably classified as

debt under general federal tax principles or that the

For reporting an acquisition of control or substantial

instrument or position is treated as a debt instrument

change in capital structure, see

Acquisition of control or

under a specific provision of the Internal Revenue Code.

substantial change in capital

structure, earlier.

Any option on one or more specified securities (which

includes an index substantially all the components of

Box 1e. Cost or Other Basis

which are specified securities), any option on financial

attributes of specified securities, or a warrant or stock

Enter the adjusted basis of any securities sold unless the

right.

security is not a covered security and you check box 5. If

Any securities futures contract.

you check box 5 and are not reporting basis, leave box 1e

blank. Enter -0- in box 1e only if the securities sold

Noncovered security. A noncovered security is any

actually had a basis of zero.

security that is not a covered security.

The following securities are not covered securities.

Covered security. A covered security is any of the

Stock acquired in 2011 that was transferred in 2011 to a

following.

dividend reinvestment plan that meets the requirements of

Stock acquired for cash in an account after 2010,

except stock for which the average basis method is

Regulations section 1.1012-1(e)(6). However, a covered

available.

security acquired in 2011 and transferred to a dividend

Stock for which the average basis method is available

reinvestment plan after 2011 remains a covered security.

and that is acquired for cash in an account after 2011.

For purposes of this rule, stock is considered transferred

to a dividend reinvestment plan if it is held in a plan that is

A specified security transferred to an account if the

not a dividend reinvestment plan and the plan amends its

broker or other custodian of the account receives a

plan documents to become a dividend reinvestment plan.

transfer statement (explained earlier) reporting the

The stock is considered transferred as of the effective

security as a covered security.

date of the plan amendments.

Certain debt instruments or options that are specified

A security acquired due to a stock dividend, stock split,

securities acquired for cash in an account after 2013. See

Regulations section 1.6045-1(a)(15)(i)(C) and (E).

reorganization, redemption, stock conversion,

Certain debt instruments or options that are specified

recapitalization, corporate division, or other similar action,

securities acquired for cash in an account after 2015. See

if the basis of the acquired security is determined from the

basis of a noncovered security.

Regulations sections 1.6045-1(a)(15)(i)(D) and

A security that, when acquired, did not have to be

1.6045-1(m)(2)(ii). This includes variable-rate debt

reported on Form 1099-B because it was acquired from

instruments, inflation-indexed debt instruments,

an exempt recipient or an exempt foreign person as

contingent payment debt instruments, convertible debt

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

instruments, options on debt instruments with payments

A security for which reporting is required by Regulations

denominated in, or determined by reference to, a currency

section 1.6049-5(d)(3)(ii) (certain securities owned by a

other than the U.S. dollar, and options issued as part of

investment units.

foreign intermediary or flow-through entity).

A securities futures contract entered into in an account

A debt instrument if the terms of the debt instrument are

after 2013.

not reasonably available to the broker within 90 days of

the date the debt instrument was acquired by the

A security acquired due to a stock dividend, stock split,

customer and the debt instrument is either a debt

reorganization, redemption, stock conversion,

instrument issued by a non-U.S. issuer or a tax-exempt

recapitalization, corporate division, or other similar action,

obligation issued before January 1, 2014.

if the basis of the acquired security is determined from the

basis of a covered security.

Identification of securities. If the customer has

Specified security. A specified security is any of the

acquired securities on different dates or at different prices

following.

and sells less than the entire position in the security,

Any share of stock (or any interest treated as stock,

report the sale according to the customer's adequate and

such as an American Depositary Receipt) in an entity

timely identification of the security to be sold. If no

organized as, or treated for federal tax purposes as, a

identification is provided, report the sale in this order.

corporation (foreign or domestic). For this purpose, a

security classified as stock by the issuer is treated as

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Instructions for Form 1099-B (2018)

Instructions For Form 1099-B - 2018 Page 8

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