Quick answer
A 1099-DA reports what you sold crypto for. For sales in 2026, the broker also reports what you paid, but only for crypto bought on or after January 1, 2026 that never left that platform.
Everything else may show a blank cost basis. If you report a blank as zero, you’d be taxed as if the entire sale price were profit.
You don’t fix this by changing the form. You report your real cost basis on Form 8949, backed by your records.
Blank vs. $0 in Box 1g, in one look
YOURS TO PROVE. Blank Box 1g with Box 9 checked. Basis wasn’t reported to the IRS. Enter your basis from your records.
REPORTED. A number in Box 1g with Box 2 checked (even $0). That number went to the IRS as your basis. If it’s wrong, correct it on Form 8949 as the instructions require.
CHECK THIS. A zero, or any number that doesn’t match your records. A zero belongs there only if your basis really was zero.
Check a row and estimate what a missing basis would cost →
Don’t file from the form alone. Match the proceeds, prove the basis.
Verified against the IRS Instructions for Form 1099-DA (2026) and the latest posted Instructions for Form 8949 (2025). The 2026 Form 8949 instructions aren’t out yet, so we’ll recheck this page in January 2027.
1099-DA Row Checker
Check one row of your 1099-DA at a time. It tells you which Form 8949 box fits and estimates what a missing basis could cost. Nothing you type leaves this page.
Result
Related: capital gains tax, how tax brackets work, tax-loss harvesting, and the basis records checklist.
What Your 1099-DA Is, and Isn’t
A Form 1099-DA is an information return your crypto broker sends to you and the IRS. It reports what happened, not your tax bill.
It’s the crypto counterpart of the Form 1099-B you get for stock sales. A broker, for this purpose, is a platform that stands ready to carry out sales of digital assets for its customers.
The form is not your tax bill, and you don’t attach it to your return. You keep it, report each sale on Form 8949 and Schedule D, and answer the digital asset question on page 1 of Form 1040. If Box 4 shows backup withholding, that amount goes on your return as tax already paid.
The rules phase in. For 2025 sales, brokers had to report gross proceeds only, and basis was optional. For sales on or after January 1, 2026, brokers must also report basis for covered assets. That mix of rows with a basis and rows without one is why 2026 forms confuse people.
Two boundaries. Shares of a crypto ETF are securities sold through a stock brokerage, so they generally come on a Form 1099-B, not a 1099-DA. And a Form 1099-K reports payment-card and payment-network activity, which is a different form from a 1099-DA. For the investing side, see our crypto 2026 guide.
Every box on the form
Box 1a: Code for digital asset
A nine-character token identifier (999999999 when the asset isn’t registered). It only identifies the asset.
Box 1b: Name of digital asset
The name of what you sold. It goes in column (a) of Form 8949, with the exact units.
Box 1c: Number of units
How many units were sold or disposed of. Match this to your own records.
Box 1d: Date acquired
When you acquired the units, per the broker. It can be blank if you bought on many dates or the sale is noncovered. It goes in column (b).
Box 1e: Date sold or disposed
The date of the sale. It goes in column (c).
Box 1f: Proceeds
Gross proceeds, already reduced by transaction fees, commissions and transfer taxes tied to the sale. It goes in column (d) exactly as shown.
Box 1g: Cost or other basis
The broker’s adjusted basis, when it reports one. Blank means no basis was reported. A zero means the broker says your basis was $0.
Box 2: Check if basis reported to IRS
Checked when the basis went to the IRS. It always is for covered sales. For noncovered sales, only if the broker chose to report it. It decides G or J versus H or K.
Box 6: Gain or loss
Short-term or long-term (and whether any of it may be ordinary). It can be blank for noncovered sales, so check your own holding period.
Box 7: Only cash proceeds
Checked when you were paid only in cash. It’s unchecked when you received other digital assets or property.
Box 8: Broker relied on customer-provided acquisition information
Means the broker used acquisition details you gave it to pick which units were sold. The IRS limits that to choosing units, not reporting basis or dates.
Box 9: Noncovered security
Checked when the sale is noncovered. The broker needn’t report basis, so Boxes 1d, 1g and 6 may be blank. Your basis is yours to prove.
Boxes 12a and 12b: Units transferred in and transfer-in date
For units that were transferred in to the broker: how many, and on what date. A sign that those units are noncovered.
Checkbox code: Applicable checkbox on Form 8949
A one-letter code near the top: G, H, J or K, suggesting the box to check. Y means the broker can’t tell the holding period.
| Box | Name | What it shows and what to do with it |
|---|---|---|
| Box 1a | Code for digital asset | A nine-character token identifier (999999999 when the asset isn’t registered). It only identifies the asset. |
| Box 1b | Name of digital asset | The name of what you sold. It goes in column (a) of Form 8949, with the exact units. |
| Box 1c | Number of units | How many units were sold or disposed of. Match this to your own records. |
| Box 1d | Date acquired | When you acquired the units, per the broker. It can be blank if you bought on many dates or the sale is noncovered. It goes in column (b). |
| Box 1e | Date sold or disposed | The date of the sale. It goes in column (c). |
| Box 1f | Proceeds | Gross proceeds, already reduced by transaction fees, commissions and transfer taxes tied to the sale. It goes in column (d) exactly as shown. |
| Box 1g | Cost or other basis | The broker’s adjusted basis, when it reports one. Blank means no basis was reported. A zero means the broker says your basis was $0. |
| Box 2 | Check if basis reported to IRS | Checked when the basis went to the IRS. It always is for covered sales. For noncovered sales, only if the broker chose to report it. It decides G or J versus H or K. |
| Box 6 | Gain or loss | Short-term or long-term (and whether any of it may be ordinary). It can be blank for noncovered sales, so check your own holding period. |
| Box 7 | Only cash proceeds | Checked when you were paid only in cash. It’s unchecked when you received other digital assets or property. |
| Box 8 | Broker relied on customer-provided acquisition information | Means the broker used acquisition details you gave it to pick which units were sold. The IRS limits that to choosing units, not reporting basis or dates. |
| Box 9 | Noncovered security | Checked when the sale is noncovered. The broker needn’t report basis, so Boxes 1d, 1g and 6 may be blank. Your basis is yours to prove. |
| Boxes 12a and 12b | Units transferred in and transfer-in date | For units that were transferred in to the broker: how many, and on what date. A sign that those units are noncovered. |
| Checkbox code | Applicable checkbox on Form 8949 | A one-letter code near the top: G, H, J or K, suggesting the box to check. Y means the broker can’t tell the holding period. |
Related, for stocks: the same missing-basis problem on a stock sale.
Blank vs. $0 in Box 1g
A blank Box 1g means the broker didn’t report a basis; a number there, including zero, means the broker is stating one, and Box 2 tells you whether it went to the IRS.
The IRS instructions for brokers say that if Box 9 is checked and the broker isn’t reporting basis, Box 1g stays blank. They say to enter -0- in Box 1g only if the asset actually had a basis of zero. So a zero is a claim, not a shrug.
If your 1099-DA cost basis is missing, that blank is the broker saying “I don’t have it,” not the IRS saying “it was nothing.” The three cases below need three different responses.
| What you see | What it means | What was reported to the IRS | What to do |
|---|---|---|---|
| REPORTED. A number above $0 in Box 1g, with Box 2 checked. | The broker is stating your basis, and it’s a covered sale (or the broker chose to report a noncovered one). | Yes. That basis went to the IRS. | Form 8949 box G (short-term) or J (long-term). Enter Box 1g in column (e). If it’s wrong, keep that figure in column (e), then adjust in columns (f) and (g) with code B. |
| YOURS TO PROVE. Blank Box 1g, with Box 9 checked. | Noncovered. The broker isn’t required to know or report your basis. | Proceeds only. No basis. | Form 8949 box H (short-term) or K (long-term). Enter your basis from your records in column (e). No adjustment is needed. |
| CHECK THIS. A zero in Box 1g. | The broker says your basis was $0. That’s right only if your basis really was $0. | If Box 2 is checked, a basis of $0 went to the IRS. If not, nothing was reported. | Compare to your records. If Box 2 is checked and $0 is wrong: box G or J, $0 in column (e), code B, and a negative adjustment in column (g). If Box 2 isn’t checked: box H or K, and your basis in column (e). |
Two edge cases. A number in Box 1g with Box 2 unchecked was shown to you but not reported to the IRS, so treat it as a starting point and use your records in box H or K. And a blank Box 1g with Box 9 unchecked is a CHECK THIS: a covered sale should show a basis, so ask the broker whether the form is complete.
One more thing to know about Box 9. It doesn’t appear on your return. It explains why Boxes 1d, 1g and 6 may be empty on that row, and it tells you the broker isn’t vouching for the basis or the dates.
Why Some Rows Have a Basis and Some Don’t
A basis shows up on the form only for covered sales: crypto acquired on or after January 1, 2026, in that broker’s custody, and never moved out before the sale.
The IRS defines a covered digital asset as one acquired after 2025 in an account where the broker provided custodial services, and held in that account until the broker carried out the sale. Everything else is noncovered.
The IRS list of noncovered digital assets includes any asset the broker wasn’t holding in custody when you acquired it, any asset acquired before 2026, and any asset transferred in to the broker. For noncovered sales, the broker isn’t required to report basis, though it may report it voluntarily.
| Situation | Usually covered? | Basis on the form? |
|---|---|---|
| Bought on the platform in 2026 and sold there | Yes | Yes. Box 1g filled and Box 2 checked. |
| Bought on the platform before 2026 | No. Noncovered. | Usually blank with Box 9 checked. The broker may report it voluntarily. |
| Transferred in from another wallet or exchange | No. Noncovered. | Usually blank. Boxes 12a and 12b show how many units came in and when. |
| Bought elsewhere, sold here | No. Noncovered. | Usually blank. To sell it here, it had to be transferred in, so it’s the row above. |
One sale can produce more than one row. The IRS’s own broker example has a customer who bought the same coin in April 2022, April 2026, and August 2026, then sold everything at once in 2027. The broker reports that single sale on separate forms: one for the August 2026 units (short-term), one for the April 2026 units (long-term), and a third for the April 2022 units, which are noncovered.
The broker can combine the noncovered units into another row only if it reports their basis too and leaves Box 9 unchecked. In that case it’s responsible for getting that basis right. So read every row on its own. Don’t assume the form is consistent from top to bottom.
How to Report Each Row on Form 8949
Enter each row’s proceeds exactly as the form shows them in column (d), then put the basis in column (e) and pick the box that matches whether that basis was reported to the IRS.
Think of it as a split of jobs: the 1099-DA is the broker’s report to the IRS, and Form 8949 is your own report of every sale, with your basis in it.
Digital assets get their own boxes. Use G, H or I in Part I for short-term sales (held one year or less). Use J, K or L in Part II for long-term sales (held more than one year). Don’t use boxes C or F for digital assets.
Box G (Short-term)
On a Form 1099-DA, basis was reported to the IRS (Box 2 checked), and you held the asset one year or less.
Box H (Short-term)
On a Form 1099-DA, basis was not reported to the IRS (Box 9 checked, or Box 2 not checked). Your basis goes in column (e).
Box I (Short-term)
Not reported to you on a Form 1099-DA or 1099-B: self-custody swaps, DEX trades, or a sale the broker left off.
Box J (Long-term)
On a Form 1099-DA, basis was reported to the IRS (Box 2 checked), and you held the asset more than one year.
Box K (Long-term)
On a Form 1099-DA, basis was not reported to the IRS (Box 9 checked, or Box 2 not checked). Your basis goes in column (e).
Box L (Long-term)
Not reported to you on a Form 1099-DA or 1099-B: self-custody swaps, DEX trades, or a sale the broker left off.
Source: IRS Instructions for Form 8949. Checked October 21, 2026.
| Box | Short- or long-term | When to use |
|---|---|---|
| Box G | Short-term | On a Form 1099-DA, basis was reported to the IRS (Box 2 checked), and you held the asset one year or less. |
| Box H | Short-term | On a Form 1099-DA, basis was not reported to the IRS (Box 9 checked, or Box 2 not checked). Your basis goes in column (e). |
| Box I | Short-term | Not reported to you on a Form 1099-DA or 1099-B: self-custody swaps, DEX trades, or a sale the broker left off. |
| Box J | Long-term | On a Form 1099-DA, basis was reported to the IRS (Box 2 checked), and you held the asset more than one year. |
| Box K | Long-term | On a Form 1099-DA, basis was not reported to the IRS (Box 9 checked, or Box 2 not checked). Your basis goes in column (e). |
| Box L | Long-term | Not reported to you on a Form 1099-DA or 1099-B: self-custody swaps, DEX trades, or a sale the broker left off. |
Many 1099-DAs also print a one-letter “Applicable checkbox on Form 8949” code near the top: G, H, J or K. A code of Y means the broker can’t tell the holding period, so you’ll use your own records to decide short-term or long-term.
Walk one row through the form
- Find Box 2, Box 9 and the checkbox code. They tell you which box the row belongs in.
- Pick the box: G or J if basis was reported to the IRS, H or K if not.
- Columns (a) to (c): the asset name or symbol and the exact units (Box 1b, Box 1c), the date acquired, and the date sold (Box 1e). For units bought on many dates, “VARIOUS” is allowed in column (b).
- Column (d): Box 1f, exactly as shown.
- Column (e): Box 1g if the basis was reported to the IRS. Otherwise, your basis from your records.
- Columns (f) and (g): leave blank unless you need an adjustment. A wrong reported basis uses code B. Transaction costs the form doesn’t reflect use code E, entered as a negative number in column (g).
- Column (h): the gain or loss. Add it up and carry the totals to Schedule D.
Schedule D totals follow the box. Boxes G and J feed lines 1b and 8b. Boxes H and K feed lines 2 and 9. Boxes I and L feed lines 3 and 10.
A shortcut exists. If every row is in box G or J, shows no adjustments, and needs no corrections, you may be able to report totals straight on Schedule D (line 1a for short-term, line 8a for long-term) without Form 8949. If you have a long list, an attached statement with the same columns can replace separate rows. Check the Form 8949 instructions for the conditions.
Two worked rows (illustrations, not advice)
Basis not reported. Box 1f is $1,000. Box 1g is blank, Box 9 is checked, and your records show $400 including fees. Held 3 months: box H. Column (d) is $1,000, column (e) is $400, no adjustment. Gain: $600.
A wrong $0 that was reported. Box 1f is $1,000. Box 1g is $0, Box 2 is checked, and your records show $400. Box G. Column (d) is $1,000, column (e) is $0, code B in column (f), and ($400) in column (g). Gain: $1,000 – $0 – $400 = $600.
One practical warning. Tax commentary has cautioned that some software that imports 1099-DA data may read a blank basis as zero. Whatever you use, check every blank row after you import it.
Wallet by Wallet: How Your Basis Is Figured Now
Since January 1, 2025, you work out which units you sold wallet by wallet or account by account, not from one pooled stack of all your crypto.
This comes from Treasury Regulation section 1.1012-1(j). There are two situations.
Units held at a broker. If you don’t identify which units you’re selling, the sale is treated as coming from the earliest units you acquired in that broker’s custody, in other words first in, first out (FIFO). You can override that with an adequate identification: telling the broker which units to sell by the time of the sale, or giving the broker a standing order (for example, highest basis first). If the broker offers only one method, that method is treated as your standing order.
Units in a wallet you control. You need a specific identification in your own records at or before the time of the sale. Without one, the earliest units in that wallet are treated as sold first.
So a method like HIFO (highest basis first) isn’t the default. It works only as a properly made specific identification, such as a standing order. The default is FIFO within each wallet or account.
Temporary relief and a transition rule
Notice 2025-7 let you identify units for broker-held assets in your own books and records during 2025, because many brokers couldn’t yet take your instructions. You could do that by noting the units before the sale, or by recording a standing order before the units were sold.
Notice 2026-20 extends that relief through December 31, 2026. It covers only assets held in a broker’s custody, and it doesn’t change what brokers must report. Unless the IRS extends it again, you can’t rely on it for sales after that date.
Rev. Proc. 2024-28 gave a safe harbor for assigning the basis you had unused on January 1, 2025 to specific wallets or accounts. A specific-unit allocation had to be finished before the earlier of your first 2025 sale of that asset or the due date (with extensions) of your 2025 return, and the allocation can’t be reversed. If you never made one, that’s a conversation for a CPA or enrolled agent.
Rebuilding a Missing Basis
Your basis is what it cost you to acquire the asset, including fees, and the way to prove it is a clean set of records for every wallet you’ve used.
The IRS defines the basis of a digital asset as the cost to acquire it, including transaction fees, commissions, transfer taxes and other acquisition costs. If you received the asset another way, the basis can differ: crypto you were paid for services starts with the amount you included in income, and inherited assets are reported as long-term with “INHERITED” in column (b). If you lost records, the IRS tells you to ask your broker for help.
Basis records checklist
- Download every exchange’s transaction history (CSV), for all years you’ve held crypto.
- List every wallet and account you’ve used, including ones you’ve closed.
- For each transfer between wallets, record the date, units, the sending and receiving wallet, and fees.
- For each purchase, record the date, units, price, and fees.
- Note any standing order you gave a broker (or recorded yourself) that sets which units are sold.
- If you used the Rev. Proc. 2024-28 safe harbor for pre-2025 holdings, keep that allocation record.
- Keep records at least as long as you hold the asset, plus the time the IRS has to assess tax on the return that reports the sale. As general guidance, that’s usually three years after you file, and longer in some situations.
One rule keeps you safe: a basis has to be supported by those records. If you can’t back a number up, don’t use it. Ask the broker for history, rebuild from statements, or talk to a CPA or enrolled agent.
What a 1099-DA Never Shows
A 1099-DA covers only sales handled by a broker, so a lot of taxable crypto activity never appears on one, and you still report it.
| Activity | Why there’s no form | How it’s reported |
|---|---|---|
| Self-custody swaps | No broker handled the trade. | Each swap disposes of the asset you gave up. Report it on Form 8949, box I (short-term) or L (long-term), using the fair market value of what you received as proceeds. |
| DEX trades | The DeFi broker rule was disapproved by Congress in 2025, so non-custodial front-ends don’t issue 1099-DA. | Same as above: Form 8949, box I or L. |
| Staking rewards | The IRS instructions say not to report rewards and staking payments on a 1099-DA. Some platforms send a Form 1099-MISC instead; many don’t. | Generally ordinary income at fair market value when you gain control of the reward (see Rev. Rul. 2023-14), reported as other income, or on Schedule C if it’s a business. That amount becomes your basis when you later sell. |
| Airdrops | Receiving a token isn’t a sale, so there’s nothing for a broker to report on a 1099-DA. | Generally ordinary income at fair market value when you receive it, reported the same way. That amount is your basis. |
| Paying for goods or services with crypto | Usually no broker is involved. A payment processor may issue a 1099-DA, with a $600 yearly threshold for those payment sales. | It’s a sale of the crypto. Gain or loss is the value you received minus your basis. Form 8949, box I or L, if there’s no 1099-DA. |
Even with a custodial broker, some activity is exempt from broker reporting for now. Under Notice 2024-57, brokers don’t have to file for wrapping and unwrapping, liquidity-provider transactions, staking transactions, digital asset lending, short sales, and notional principal contracts until the Treasury issues more guidance. The reward you earn from those activities is a separate matter and stays taxable.
Stablecoins and NFTs have optional reporting rules. A broker using them may report total proceeds only, leaving basis boxes blank, and may skip reporting entirely when your qualifying stablecoin sales total $10,000 or less for the year, or your specified NFT sales total $600 or less. A missing form still doesn’t make a gain tax-free, so use your own records.
Crypto rewards from a card or app have their own page: are credit card rewards taxable. Event contracts do too: Kalshi and Polymarket taxes.
If Your Return Doesn’t Match: CP2000 and Other Notices
If the IRS thinks your return doesn’t match what your broker reported, you’ll typically get a CP2000, which is a proposed change and not a bill, and records usually settle it.
Here’s how crypto trips it. The IRS has your proceeds from the 1099-DA. If your return shows those proceeds without a supported basis, or leaves the sale off, the numbers can look like a large unreported gain. Sometimes a CP2501 comes first, asking you to explain a discrepancy.
The best prevention is the filing in the section above: proceeds that match Box 1f, in the right box, with a basis you can document. If a notice arrives anyway, read the response date, compare each line to your Form 8949, and answer with your records. The steps are in our guide to a CP2000 over a missing cost basis, which applies to crypto the same way.
For a large balance, many wallets, DeFi activity, or any notice you’re unsure about, hire a CPA or enrolled agent.
If the Form Itself Is Wrong
If the proceeds on your 1099-DA are wrong, or a sale is duplicated or missing, ask the broker for a corrected form and keep proof you asked.
Save the original form, the transaction history that shows the real figures, and your messages with the broker. A corrected form replaces the old one, and the IRS gets the corrected copy.
A sale missing from the form is still reportable. If you got no 1099-DA for it, it goes in box I or L. If the form shows less than you really received, the IRS instructions say to report the higher, correct proceeds in column (d). Never report less than the form shows.
If the broker won’t fix it before you file, a CPA or enrolled agent can tell you how to report in the meantime.
Losses Count Too
A crypto sale at a loss still belongs on Form 8949, and capital losses offset gains, then up to $3,000 a year of other income ($1,500 if married filing separately), with the rest carried forward.
That makes a documented basis valuable in both directions. A blank treated as $0 can hide a real loss, because you’d be reporting a gain instead. For planning, see tax-loss harvesting and the tax-loss harvesting calculator.
The wash-sale rule is a common question. Section 1091 covers stock or securities, and the IRS treats most digital assets as property, so as of the date above we found no enacted rule applying it to ordinary crypto. A bill introduced in June 2026, H.R. 9172, would extend wash-sale rules to digital assets. We found no sign it has become law. Box 1i on the 1099-DA is for wash-sale losses on tokenized securities only. Other anti-abuse rules can still apply, so check with a CPA or enrolled agent before building a plan around the gap.
Key Dates
The big change is January 1, 2026, when brokers began reporting basis for covered assets.
- 2025 sales
- Brokers had to report gross proceeds. Basis was optional. Those forms were due to customers February 17, 2026.
- January 1, 2026
- Brokers must report basis for covered digital assets sold on or after this date. Noncovered sales don’t require it.
- December 31, 2026
- Notice 2026-20 relief ends, unless extended. It lets you identify broker-held units in your own books and records for sales through this date.
- February 15, 2027
- The date brokers must furnish 2026 forms to customers under the IRS general instructions. February 15, 2027 is a federal holiday (Washington’s Birthday), so the practical deadline is expected to be Tuesday, February 16, 2027. Brokers can request an extension.
- April 15, 2027
- Individual returns for 2026 are due.
- January 2027
- The final 2026 forms and instructions should be posted. We’ll recheck this page then.
FAQ
Short answers to the questions people search most.
What is Form 1099-DA?
It’s an information return from your crypto broker that reports your digital asset sales to you and the IRS, like a Form 1099-B does for stocks.
Why is my 1099-DA cost basis blank?
Box 9 is probably checked, which means the sale is noncovered (bought before 2026 or transferred in, for example) and the broker isn’t required to report basis. Use your own records and report the row in box H or K on Form 8949.
Why does my 1099-DA show $0 cost basis?
The IRS tells brokers to enter -0- only when the basis actually was zero, so a $0 is a stated basis. If Box 2 is checked and the $0 is wrong, report the form’s $0 in column (e) and correct it with code B and an adjustment in column (g). If Box 2 isn’t checked, enter your real basis in column (e).
What does Box 9 mean on a 1099-DA?
Box 9 marks a noncovered security. The broker isn’t required to report basis for it, so Boxes 1d, 1g and 6 can be blank, and your basis is yours to prove.
What’s the difference between covered and noncovered crypto?
Covered crypto was acquired after 2025 in an account where the broker held it, and stayed there until it was sold. Crypto bought earlier, or transferred in from somewhere else, is noncovered.
Do exchanges report cost basis for 2026 sales?
They must for covered assets, and they may report it voluntarily for noncovered ones. That’s why one form can mix rows with a basis and rows without.
Do I have to report crypto if I didn’t get a 1099-DA?
Yes. Taxable sales and swaps go on Form 8949 whether or not a form exists, in box I (short-term) or L (long-term) when no 1099-DA covers them.
Why didn’t my self-custody wallet send a 1099-DA?
Wallet software isn’t a broker that carries out sales for customers. The rule that would have covered non-custodial platforms was disapproved in 2025, but your trades are still taxable.
Does a 1099-DA include DeFi trades?
No. DeFi and DEX trades generally don’t produce a 1099-DA. You report them yourself, usually in box I or L.
How do I report a 1099-DA on Form 8949?
Put Box 1f in column (d), put the basis in column (e), and check the box that matches whether basis was reported to the IRS. The section on Form 8949 above walks through it row by row.
Which Form 8949 box do I use for crypto?
For short-term sales, use G (basis reported), H (not reported) or I (no 1099-DA). For long-term sales, use J, K or L.
Do my proceeds have to match the 1099-DA?
Yes. Report the Box 1f proceeds in column (d). If you really received more than the form shows, report the higher amount. Never report less.
What if I transferred crypto between wallets?
The transfer itself isn’t a sale, but the receiving broker treats those units as noncovered, so its form won’t carry your original basis. Keep your own records of the date, units, and cost.
Can I use HIFO for crypto?
Only as a properly made specific identification, such as a standing order. The default is FIFO within each wallet or account. Through 2026, Notice 2026-20 lets you record a standing order in your own books for broker-held assets.
What is wallet-by-wallet cost basis?
Since 2025, the units you sold and their basis are determined within each wallet or account, not across all your crypto at once.
What happens if I file with a $0 basis?
You’d report the whole sale price as gain and likely pay more tax than you should. If you’ve already filed that way, you can generally amend with Form 1040-X, usually within three years of filing or two years of paying the tax, whichever is later.
What if my 1099-DA proceeds are wrong?
Ask the broker for a corrected form and keep proof. Don’t lower the proceeds on your return to match your own figure.
Do I attach the 1099-DA to my return?
No. Keep it with your records and report the sales on Form 8949 and Schedule D. Any backup withholding in Box 4 does go on your return.
Last updated: .
This is general information, not tax advice. It’s based on the IRS instructions for Forms 1099-DA and 8949 and Treasury regulations verified on October 21, 2026. Rules for digital assets continue to change. Consult a CPA or enrolled agent about your situation.
Daniel Hayes is the founder and sole researcher at AdvoraHQ. He covers U.S. personal finance, insurance, and consumer law — working directly from IRS publications, federal and state statutes, court opinions, and SEC filings rather than secondary summaries. His focus is the gap between what readers think they know and what the source documents actually say. Daniel is not a licensed attorney, CPA, or financial advisor; his articles are educational and not personalized advice. Reach him at Daniel.Hayes@advorahq.com.
