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1099B & 8949 Question

Forum|Forum|2 years ago
August 15, 2024
1 reply
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If broker 1099B form shows positive proceeds but form 8949 shows negative net activity (losses greater than gains) which takes precedence for reporting?

qbteachmt

Level 15

The 1099- series is called Informational.

-B = brokers will use this to report to you and to the IRS information about transactions (basically, a summary of the details) done through them. A taxpayer might have multiple 1099-B, in other words, since it is per brokerage firm. A transaction summary from one broker can be negative, another can be positive, there can be short-term and long-gain or loss, across each broker. Just like individual transactions can have any one of these outcomes.

Form 8949 is part of the tax return. It is not from any one transaction, but includes all transactions that apply to that form for that taxpayer for that tax year. The information transfers to Sched D, which is part of the 1040.

It's not at all like you asked. You asked: "If I have lettuce and an entire sandwich, which should I eat?"

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