What is a 1099 Sale?
A 1099 sale is a sale or transfer of stock or other securities which must be reported to the Internal Revenue Service (IRS). In this case, an IRS Form 1099-B will be issued by the broker who handled the transaction, to the person who sold the stock. Most securities transactions fall under the category of a 1099 sale. A Form 1099 will be issued by the broker regardless of whether the person’s account had a net gain or loss in a given tax year. The most common situation in which a 1099 sale will take place is when someone, using their personal account with a brokerage firm, buys and then at some point sells a stock. When this sale takes place, it is recorded, and at the end of the tax year, the 1099-B is sent to the account owner. This form lists every sale of stock that occurred in the previous year, and includes details such as the name of the company, its stock ticker symbol, the number of shares purchased or sold, the total purchase amount, and the proceeds from the sale. Each of the
