What Is the 1099-B Threshold? A No-Minimum Guide for Brokers & Barter Exchanges

Every sale matters with Form 1099-B, no matter how small. This guide helps brokers and barter exchanges file correctly and avoid IRS penalties.

Why Does Form 1099-B Have No Dollar Threshold?

Form 1099-B has no minimum reporting amount because the IRS needs a record of every sale that affects capital gains. Other 1099 forms have limits, like $600 for 1099-MISC or $10 for 1099-INT. Each sale on Form 1099-B can change a taxpayer’s yearly profit or loss, so even small trades matter. Missing these sales can create gaps in IRS records and increase the risk of underreported income.

Because the 1099-B threshold is technically $0 (with a few exceptions), brokers are expected to report nearly every transaction, no matter how small it looks. Even something tiny, like a $1 sale, can trigger an IRS mismatch notice if it isn’t filed.

And those notices can get expensive fast. For information returns due in 2026, the IRS penalties per form are:

• $60 if corrected within 30 days
• $130 if filed more than 30 days late, but before or on August 1
• $340 if filed after August 1 or not filed
• At least $680 for intentional disregard

There are only a few situations where an exception applies. For example, sales of fractional shares of stock with gross proceeds less than $20 are not required to be reported, and some sales of precious metals are not reportable under the specific rules in the Form 1099-B instructions.

Form 1099-B Reporting Requirements

Here’s what you need to do as a filer:

1. Report every sale: Report each sale—there’s no Form 1099-B minimum amount—unless an IRS exception applies (for example, fractional share sales with gross proceeds under $20, sales to exempt recipients such as corporations—except covered securities sold by S corporations acquired after 2011—and certain precious metal sales).
2. Separate the reports by category: Covered short-term, covered long-term, and noncovered securities must go on different 1099-B forms. Aggregate transactions involving regulated futures, foreign currency, or Section 1256 option contracts—report other sales on separate Forms 1099-B. Consolidated substitute statements are acceptable.
3. Submit on time: E-filing is required if you file 10 or more information returns in aggregate (all types combined). Otherwise, you may paper-file or e-file. E-file due date is March 31 (next business day if it falls on a weekend or legal holiday).

Who Must File Form 1099-B?

Any business that acts as a broker or operates a barter exchange must file Form 1099-B. If you help customers trade, sell, or swap assets in an organized way, you likely fall under this rule.

Here are the types of filers the IRS expects to report:

Traditional and Online Brokers: This includes full-service brokerage firms, discount brokers, and robo-advisor platforms that execute trades for customers.

Digital Asset Brokers: Starting with 2025 sales, brokers generally file Form 1099-DA (not Form 1099-B) for digital asset sales. There are limited exceptions for certain dual-classification assets (for example, some limited-access network transactions, section 1256 contracts reported in aggregate on Form 1099-B, and money market fund shares).

Barter Exchanges: A barter exchange is an organization whose members or clients contract to trade with each other or with the exchange. Informal, noncommercial service swaps are not treated as barter exchanges.

Note: Brokers are not required to file Form 1099-B for sales initiated by dealers in securities or financial institutions. When a sale occurs through a cash-on-delivery/delivery-versus-payment arrangement, only the broker that receives the gross proceeds against delivery is required to report the sale.

Responsibility When Multiple Brokers Are Involved

If an introducing broker and a clearing broker are both involved, the introducing broker is responsible for filing unless a written agreement assigns the filing responsibility to the clearing broker. When such an agreement exists, the clearing broker handles both the filing and the delivery of statements to recipients.

Reportable vs. Non-Reportable Transactions

Here’s a simplified breakdown of what must be reported and what does not require a Form 1099-B:

Cost Basis: What the IRS Needs and When

The cost basis is the sum of the customer’s purchase price of a security plus any additional costs. The IRS uses basis to confirm gains and losses.

Covered vs Noncovered Securities

• Covered securities include stock acquired for cash after 2010 (and stock for which the average basis method is available—such as mutual fund and DRP shares—acquired for cash after 2011); certain options and debt instruments acquired after 2013 are covered, with additional categories covered if acquired after 2015.
• For noncovered securities, check Box 5 (Noncovered security) if reporting on a separate Form 1099-B. When selling a noncovered security, you may check Box 5 and leave boxes 1b, 1e, 1f, 1g, and 2 blank.

Digital Assets & Crypto (2026 Filings)

According to final regulations, brokers generally must report sales of digital assets in 2025 on Form 1099-DA (gross proceeds only for 2025; basis reporting for covered digital assets begins with 2026 sales). Limited exceptions apply—for example, certain dual-classification assets and, for 2025 only, tokenized assets for cash may be reported on either Form 1099-DA or Form 1099-B.

Limited Exceptions to Filing

These are some exceptions you must consider while filing:

• Corporations are exempt recipients for Form 1099-B; however, you must file Form 1099-B for the sale of a covered security by an S corporation if the security was acquired after 2011.
• For cash-on-delivery (COD) or similar accounts, only the broker that receives the gross proceeds against delivery of the securities is required to report the sale.

Seven-Step 1099-B Filing Checklist

Use this seven-step checklist as you prepare and file Form 1099-B:

1. Gather taxpayer details before trading starts: Make sure you have a current Form W-9 or W-8 on file before any trades.
2. Put each sale in the right reporting bucket: Use separate Forms 1099-B for covered short-term, covered long-term, and noncovered transactions.
3. Double-check holding period and cost basis: Verify acquisition and sale dates and ensure wash-sale adjustments are correctly applied.
4. Run IRS TIN Matching: Use it to catch name/TIN mismatches early; apply 24% backup withholding only when required.
5. Deliver Copy B to recipients on time: Furnish Copy B to each recipient by February 17, 2026.
6. E-file Copy A with the IRS: File electronically by March 31, 2026.
7. Keep your 1099-B data and files: Retain for at least 3 years, or 4 years if backup withholding was imposed.

Real-Life Scenarios

Use these examples to understand barter exchange and broker 1099-B rules on a more practical level:

FAQs

1. Is there any dollar limit for Form 1099-B?

Generally, brokers and barter exchanges report sales with no dollar threshold, except for certain exceptions like fractional share sales under $20 or exempt recipients such as corporations (except S corp covered securities acquired after 2011).

2. Should multiple trades be combined into a single form?

Aggregate only regulated futures, foreign currency, or Section 1256 contracts; report other sales separately.

3. Do corporations receive Form 1099-B?

Corporations are exempt recipients, except for S corporations with covered securities acquired after 2011.

4. What if the cost basis is unknown for a non-covered security?

If reporting a noncovered security and checking Box 5, you may leave cost basis boxes blank without penalty.

5. How are corrected forms handled?

File a corrected Form 1099-B within 30 days to minimize penalties.

6. When will crypto trading switch to Form 1099-DA?

For sales in 2025, brokers must file Form 1099-DA; basis reporting begins for 2026 sales (filed in 2027).