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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2608
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I received 1099- Proceeds from Broker & Barter Exchange and

Customer Question

I received 1099-B Proceeds from Broker & Barter Exchange and in No. 5 (Non-Covered Security) YES. Do I have to file this form with my income tax
Submitted: 1 year ago.
Category: Finance
Expert:  TaxWhisperer replied 1 year ago.

Yes, you do. The phrase "non-covered" only means that the broker isn't reporting the cost basis to the IRS. On a "covered" security, the broker reports the cost basis to the IRS. They are phasing in the reporting of cost basis. Eventually, nearly all securities will have cost basis reported. This one you have to put that in yourself.

But, YES, this is being reported to the IRS, and YES you need to report it on your taxes. It goes on Form 8949 and Schedule D. Let me know if you have any other questions.