The National Directory of Certified Public Accountants

Ask A CPA - Capital Gains & Losses

Are Stock Short Sales Reported To The IRS ?

A short sale is a sale of stock that you do not own but borrow for purposes of the sale from a broker. Brokerage firms are required by the IRS to report all stock and bond security sales, including short sales. A short sale is considered a sale according to the IRS regulations and must be reported to you and then indicated on form 1099-B.

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