Form 1099-DA, Digital Asset Proceeds From Broker Transactions, is the form a US crypto exchange or other digital asset broker sends you and the IRS to report what you sold. Gross proceeds are reported for every sale a broker effects for you after 2025, but cost basis is only required for coins that count as covered securities: broadly, assets acquired after 2025 in that same custodial account and never moved out. For anything older or transferred in, the basis box can be blank, and working it out is your job.
That split is the part most people will trip over in their first 1099-DA season. Everything below comes from the IRS's 2026 instructions for Form 1099-DA, written for brokers but just as useful for reading your own form, and it's current as of October 2026.
Who sends a 1099-DA
A broker is anyone who, in the ordinary course of business, stands ready to effect sales of digital assets for others. Generally only a US digital asset broker has to report. That includes trading platforms acting as agent or dealer, and digital asset middlemen such as kiosk operators and some payment processors.
People who only validate transactions through proof of work or proof of stake, or who only provide hardware or software that lets you control your own private keys, aren't digital asset middlemen. That's why a self-custody wallet won't send you a 1099-DA.
Covered versus noncovered: why basis may be missing
| Your coins | Status | What the broker reports |
|---|---|---|
| Bought after 2025 in the same custodial account and sold from it | Covered security | Proceeds and basis, with box 2 checked if basis was reported to the IRS |
| Acquired before 2026 | Noncovered security | Proceeds; basis is voluntary and box 9 may be checked |
| Transferred in from another wallet or exchange | Noncovered security | Proceeds; basis is voluntary |
| Bought through an account the broker didn't hold in custody | Noncovered security | Proceeds; basis is voluntary |
If box 9 is checked, the broker doesn't have to fill in date acquired, basis, accrued market discount, wash sale loss or gain or loss. You still owe tax on the gain, so you'll need your own records of what you paid.
The boxes worth reading first
| Box | What it shows |
|---|---|
| 1a and 1b | Code and name of the digital asset |
| 1c | Number of units sold |
| 1d and 1e | Date acquired and date sold or disposed |
| 1f | Proceeds |
| 1g | Cost or other basis |
| 1i | Wash sale loss disallowed, for tokenized securities |
| 4 | Federal income tax withheld, for example backup withholding |
| 7 | Checked if only cash proceeds were paid |
| 9 | Checked if the asset is a noncovered security |
| 11a to 11c | Details for aggregate reporting under the optional methods |
| 14 to 16 | State information |
Proceeds are net of fees, and a swap counts as a sale
Box 1f isn't the headline price of your trade. Brokers must reduce gross proceeds by digital asset transaction costs, including transaction fees, commissions and transfer taxes tied to the sale. And proceeds can include more than cash: the IRS says they may include services, other digital assets or other property you received in exchange. So swapping one coin for another on a platform is reported as a sale of the coin you gave up, at the value of what you got.
If box 1g shows a zero, the instructions say brokers should enter zero only when the asset really had a basis of zero; a blank means no basis was reported. Box 4 is usually empty, but if you never gave the broker your taxpayer ID on Form W-9, backup withholding may show up there, and it counts as tax already paid.
The $600 and $10,000 thresholds
Brokers don't have to report every small sale. The de minimis rules in the instructions are:
- Payment processors: sales made to pay for goods or services are not reported if they total $600 or less for the year. Once they exceed $600, all of them are reported.
- Qualifying stablecoins: under the optional method, a broker doesn't report designated stablecoin sales if your total proceeds from them don't exceed $10,000 for the year.
- Specified NFTs: under the optional method, sales aren't reported if your total proceeds don't exceed $600 for the year.
Not getting a form doesn't mean the sale isn't taxable. These are reporting thresholds for the broker, not exemptions for you.
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Wash sales only apply to tokenized securities here
Box 1i is for losses from wash sales of tokenized securities, meaning digital assets that are treated as stock or securities. The IRS example: Alex buys 100 units of a tokenized security for $1,000, sells them for $600, and buys 75 units back in the same account within 30 days. The loss is $400, but the part on 75 units is disallowed, so the broker reports $300 in box 1i.
How to use it on your return
- Match each 1099-DA line to your own transaction history, especially for coins bought before 2026 or moved between platforms.
- Fill in or correct basis where box 1g is blank or wrong.
- Report each sale on Form 8949 and carry the totals to Schedule D.
- If you also sold stocks through a brokerage, keep those on your Form 1099-B lines, not mixed in with digital assets.
The verdict
Treat the 1099-DA as the IRS's copy of your sales, not as a finished tax calculation. The proceeds will be there; the basis often won't be, especially for anything bought before 2026 or brought in from a wallet. Start keeping clean cost records per wallet now, because the broker won't be able to fill that gap for you.
Frequently asked questions
What is Form 1099-DA?
It's Digital Asset Proceeds From Broker Transactions, the information return US digital asset brokers file to report customers' sales of digital assets.
Why is the cost basis blank on my 1099-DA?
Brokers only have to report basis for covered securities. Assets acquired before 2026 or transferred in from elsewhere are noncovered, so basis reporting is voluntary.
Will I get a 1099-DA from a self-custody wallet?
No. Providers who only supply hardware or software that lets you control your private keys aren't digital asset middlemen.
Is there a minimum amount for a 1099-DA?
Some sales have de minimis rules: $600 for payment processor sales and specified NFTs, and $10,000 for qualifying stablecoin sales under the optional method.
Do wash sale rules apply on Form 1099-DA?
Box 1i reports wash sale losses for tokenized securities, meaning digital assets treated as stock or securities.
