1099-B Form

Form 1099-B is the IRS information return that brokers use to report proceeds from sales of securities and certain other property. It lists each sale's gross proceeds, acquisition and sale dates, and, in many cases, the cost basis, giving both the taxpayer and the IRS a record of the transaction.

Why it matters

The data on a 1099-B feeds directly into Form 8949 and Schedule D, where capital gains and losses are calculated. Because the IRS receives its own copy, mismatches between what a broker reports and what a taxpayer files are a common trigger for automated notices. Investors who sell gold ETF shares or bitcoin through a traditional brokerage will typically see those sales on a 1099-B.

Reporting for digital assets is shifting to a dedicated document. Under regulations finalized in 2024, US digital asset brokers begin reporting customer sales on the new Form 1099-DA starting with the 2025 tax year, bringing crypto reporting closer to the securities model.

In the gold vs bitcoin debate

Paper exposure to either asset tends to generate paperwork. Selling shares of a gold ETF or a spot bitcoin ETF produces a 1099-B, while selling physical coins to a local dealer often does not, though the tax obligation exists either way. Some investors prefer physical gold or self-custodied bitcoin partly for this administrative simplicity, but the legal duty to report gains is identical in every case.