Form 1099-B - Proceeds From Broker And Barter Exchange Transactions

Instructions for Recipient (Continued)

Box 1f. Shows the amount of accrued market discount. For details on

Box 6. If the exercise of a non-compensatory option resulted in a sale

market discount, see Schedule D (Form 1040) instructions,

of a security, indicates whether the amount in box 1d was adjusted for

Instructions for Form 8949, and Pub. 550. If box 5 is checked, box 1f

premium.

may be blank.

Box 7. If checked, you cannot take a loss on your tax return based on

Box 1g. Shows the amount of nondeductible loss in a wash sale

gross proceeds from a reportable change in control or capital

transaction. For details on wash sales, see Schedule D (Form 1040)

structure reported in box 1d. See the Form 8949 and Schedule D

instructions, Instructions for Form 8949, and Pub. 550. If box 5 is

instructions. The broker should advise you of any losses on a separate

checked, box 1g may be blank.

statement.

Box 2. The short-term and long-term boxes pertain to short-term gain

Regulated Futures Contracts, Foreign Currency Contracts, and

or loss and long-term gain or loss. If the Ordinary box is checked, your

Section 1256 Option Contracts (Boxes 8 Through 11):

security may be subject to special rules. For example, gain on a

Box 8. Shows the profit or (loss) realized on regulated futures, foreign

contingent payment debt instrument subject to the noncontingent

currency, or Section 1256 option contracts closed during 2016.

bond method generally is treated as ordinary interest income rather

Box 9. Shows any year-end adjustment to the profit or (loss) shown in

than as capital gain. Please see the Instructions for Form 8949,

Pub. 550, or Pub. 1212 for more details on whether there are any

box 8 due to open contracts on December 31, 2015.

special rules or adjustments that might apply to your security. If box 5

Box 10. Shows the unrealized profit or (loss) on open contracts held in

is checked, box 2 may be blank.

your account on December 31, 2016. These are considered closed

out as of that date. This will become an adjustment reported as

Box 3. If checked, the basis in box 1e has been reported to the IRS

unrealized profit or (loss) on open contracts-–12/31/2016 in 2017.

and one or more of the check boxes in box 2 must be checked. If box

3 is checked on Form(s) 1099-B and NO adjustment is required, see

Box 11. Boxes 8, 9, and 10 are all used to figure the aggregate profit

the instructions for your Schedule D as you may be able to report your

or (loss) on regulated futures, foreign currency, or Section 1256 option

transaction directly on Schedule D. If the Ordinary check box in box 2

contracts for the year. Include this amount on your 2016 Form 6781.

is checked, an adjustment may be required.

Box 12. If checked, proceeds are from a transaction involving

Box 4. Shows backup withholding. Generally, a payer must backup

collectibles.

withhold if you did not furnish your taxpayer identification number to

Box 13. Shows the cash you received, the fair market value of any

the payer. See Form W-9 for information on backup withholding.

property or services you received, and the fair market value of any

Include this amount on your income tax return as tax withheld.

trade credits or scrip credited to your account by a barter exchange.

Box 5. If checked, the securities sold were noncovered securities and

See Pub. 525.

boxes 1b, 1e, 1f, 1g, and 2 may be blank. Generally, a noncovered

Boxes 14–16. Shows state(s)/local income tax information.

security means: stock purchased before 2011, stock in most mutual

Future developments. For the latest information about any

funds purchased before 2012, stock purchased in or transferred to a

developments related to Form 1099-B and its instructions, such as

dividend reinvestment plan before 2012, debt acquired before 2014,

legislation enacted after they were published, go to

options granted or acquired before 2014, and securities futures

form1099b.

contracts entered into before 2014.

Form 1099-B - Proceeds From Broker And Barter Exchange Transactions - 2016 Page 7

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