Why Don’t the Aggregate Proceeds Reported on My Form 1099 Match the P&L I see in the App?

The amount reported on the Form 1099 is the aggregated trading amount. Deposits, withdrawals, and your profit/losses have no correlation with your aggregate proceeds.

For example, you deposited $2000 at the very beginning:

• On day 1,  you purchased ABC shares for $2,000. Then, you sold the shares for a gain of $1,000, with proceeds of $3,000 on day 5.
• On day 10, you purchased XYZ shares for $1,500 and then sold the same shares for another gain of $1,000 with proceeds of $2,500.

In this example, we will report proceeds of $3,000 + $2,500 = $5,500 and a cost of $2,000 + $1,500 = $3,500. While you only deposited $2,000, the reported proceeds must be $5,500.

The Webull app uses the average purchase price to display the cost basis. The default tax lot reporting method Webull follows is FIFO (First In First Out).  The app does not consider wash sales, therefore, the P/L displayed in the app will differ from the P/L reported on the tax form.