1099-B – Proceeds from Broker and Barter Exchange Operations

The amount reported in box 2 of this form is for the aggregate proceeds from transactions involving stocks, bonds, and other types of securities. It should be reported on Schedule D, Capital Gains and Losses.  But if box 12 is checked, you cannot take a loss.

Bartering income in box 3 should normally be reported on Schedule C or C-EZ as income from a business. 

Boxes 8, 9 and 10 are used to figure the aggregate profit or loss on regulated futures or foreign currency contracts.  The amount in box 11 should be reported on Form 6781, Gains and Losses from Section 1256 Contracts and Straddles.

1099-C – Cancellation of Debt

You should receive this form if you had $600 or more in debt that was cancelled by an agency of the Federal government, a financial institution or credit union.  Generally you would include the cancelled debt (amount in box 2) in Other Income on Form 1040, if it is non-business debt, and on Schedule C, E, or F, as applicable, if it is business debt.

If any interest on the debt is also cancelled, it will be included in the amount in box 2 but will also be reported separately in box 3.  If the interest would not have been deductible had you paid it, such as interest on a personal loan, you should include the entire amount in box 2 in your income.  If the interest would have been deductible, include in your income the amount in box 2 minus the amount in box 3.

Not all cancelled debt has to be included in your income.  For example, in some cases part of a student loan may be forgiven if you work for a certain period of time in certain professions or for certain types of employers.  In this case, you would not have to include the cancelled debt in your income.  Also excluded from income are debt cancelled in a bankruptcy case or when you are insolvent, qualified farm debt, qualified real estate debt, and cancellation of debt intended as a gift.