If you use a broker to help buy and sell stocks and bonds

If you use a broker to help buy and sell stocks and bonds, then the brokerage firm will send you a form at the beginning of the year called a “1099 B, Proceeds From Broker and Barter Exchange Transactions,” which lists all of your earnings and losses from the sale of securities. It’s typical for the brokerage firm to list the earnings as net proceeds, meaning how much you earned minus any associated commissions and fees. If they list gross proceeds, then you’ll have to deduct the commissions and fees yourself [source: CCH]..

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