The securities delivered to close the short sale include both covered securities and noncovered securities (as explained earlier under How many forms to file for each transaction), or You are reporting both short-term and long-term gain or loss from a short sale closed by delivery of covered securities (as explained earlier under How many forms to file for each transaction), If you check box 5, you may leave boxes 1b, 1e, and 2 blank or you may complete boxes 1b, 1e, and 2 and not be subject to penalties under section 6721 or 6722 for failing to report this information correctly. You may check box 5 if reporting the noncovered securities on a third Form 1099-B.

You must report the sale of the noncovered securities on a third Form 1099-B or on the Form 1099-B reporting the sale of the covered securities bought in April 2020 (reporting long-term gain or loss). Even though the stock was sold in a single transaction, you must report the sale of the covered securities on two separate 2021 Forms 1099-B (one for the securities bought in April 2020 with long-term gain or loss and one for the securities bought in August 2020 with short-term gain or loss).

In June 2021, Bella sells all of the stock in a single transaction. The shares of stock bought in April 2000 are noncovered securities. The shares of stock bought in 2020 are covered securities. Your customer Bella bought shares of stock in ABC Corporation in April 2000, April 2020, and August 2020. Also, you must check the QOF box in box 3 for all dispositions of QOF investments. For example, if the QOF investment is stock, you must complete box 1e to report cost or other basis. Complete all boxes as appropriate, depending on the nature of the interest disposed. Follow the specific instructions for brokers or barter exchanges (for example, the reporting of basis for a QOF investment that is a covered security). If you are a broker or barter exchange, including a QOF that is a broker or barter exchange, complete Form 1099-B as usual for all dispositions of interests in QOFs. For additional information on furnishing statements, see part M in the 2021 General Instructions for Certain Information Returns. QOFs must furnish a statement to the person who disposed of the interest in the QOF investment. Check the 'QOF' box for reporting the disposition of an interest in the QOF. Enter the gross cash proceeds from the disposition of any interest in the QOF, if known.Д«ox 3. Enter the date of disposition of any interest in the QOF.Д«ox 1d. Enter the acquisition date of any interest in the QOF, if known.Д«ox 1c. For example, for stock, enter the number of shares or units for partnerships, enter the percentage of investment.Д«ox 1b. For interests in the QOF, enter the appropriate descriptions.

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