Instructions For Form 1099-B - 2017 (Page 8 of 11) in pdf

notifies you in writing of an intent to determine the

Any debt instrument, other than a debt instrument

proceeds from the sale by the actual proceeds per share

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

and you receive that notification by January 15 of the

mortgages held by a REMIC, certain other debt

calendar year following the year of the sale. You may

instruments with payments subject to acceleration, and

extend the January 15 deadline but not beyond the due

pools of debt instruments the yield on which may be

date for filing Form 1099-B.

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

For this purpose, a security classified as debt by the

Do not include any accrued qualified stated interest on

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

bonds sold between payment dates (or on a payment

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

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

broker knows that the security is reasonably classified as

Form 1099-INT.

debt under general federal tax principles or that the

instrument or position is treated as a debt instrument

For reporting an acquisition of control or substantial

under a specific provision of the Internal Revenue Code.

change in capital structure, see page 3.

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.

Covered security. A covered security is any of the

The following securities are not covered securities.

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,

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

except stock for which the average basis method is

security acquired in 2011 and transferred to a dividend

available.

reinvestment plan after 2011 remains a covered security.

Stock for which the average basis method is available

For purposes of this rule, stock is considered transferred

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

A specified security transferred to an account if the

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

broker or other custodian of the account receives a

not a dividend reinvestment plan and the plan amends its

transfer statement (explained earlier) reporting the

plan documents to become a dividend reinvestment plan.

security as a covered security.

The stock is considered transferred as of the effective

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

reorganization, redemption, stock conversion,

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

recapitalization, corporate division, or other similar action,

Certain debt instruments or options that are specified

if the basis of the acquired security is determined from the

securities acquired for cash in an account after 2015. See

basis of a noncovered security.

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

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

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

instruments, inflation-indexed debt instruments,

reported on Form 1099-B because it was acquired from

contingent payment debt instruments, convertible debt

an exempt recipient or an exempt foreign person as

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

foreign intermediary or flow-through entity).

investment units.

A debt instrument if the terms of the debt instrument are

A securities futures contract entered into in an account

not reasonably available to the broker within 90 days of

after 2013.

the date the debt instrument was acquired by the

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

reorganization, redemption, stock conversion,

customer and the debt instrument is either a debt

recapitalization, corporate division, or other similar action,

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

if the basis of the acquired security is determined from the

obligation issued before January 1, 2014.

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

1. Any shares for which the acquisition date is

security classified as stock by the issuer is treated as

unknown.

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

2. The shares that were acquired first, whether they

security is not treated as stock unless the broker knows

are covered or noncovered securities.

that the security is reasonably classified as stock under

general federal tax principles.

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Instructions for Form 1099-B (2017)

Instructions For Form 1099-B - 2017 Page 8

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