Your crypto exchange reports $5,000 in sale proceeds on Form 1099-DA and leaves the cost basis box blank. How much did you actually make on the sale? The answer depends on what you paid for the crypto and which units you sold. Once you know what the broker reported to the IRS, you can check it against your records and calculate the gain or loss for your U.S. federal tax return.

What is Form 1099-DA and who gets one?

Form 1099-DA is a statement that brokers send to investors and the IRS for certain sales and exchanges of digital assets. U.S. custodial exchanges, which hold crypto on customers' behalf, generally issue it when they handle a reportable transaction. The form shows how much you received and may also show your basis, which usually starts with what you paid for the asset.

Selling Bitcoin for dollars and trading Bitcoin for Ether are both examples of dispositions. In the swap, the dollar value of the Ether received helps determine the proceeds from disposing of the Bitcoin. The swap can generate a taxable gain even if you never withdraw dollars.

Form 1099-DA reporting for 2025 and 2026

Start with the tax year printed on the form. A form you received in 2026 for a 2025 sale follows different basis reporting rules than one you receive in 2027 for a 2026 sale.

2025 transactions reported in 2026

Mandatory gross proceeds reporting began with 2025 transactions. Brokers generally did not have to report cost basis to the IRS for those sales. If your form omits basis, use your purchase records to calculate the gain or loss.

2026 transactions reported in 2027

For 2026 sales, brokers generally must report basis for covered digital assets. A typical covered asset is crypto you buy in a broker's custodial account in 2026, keep there, and sell through that broker. The IRS classifies crypto acquired before 2026 or transferred in from another wallet as noncovered. Brokers can report proceeds on those sales while leaving the basis field blank. Special reporting rules can also apply to certain stablecoins and NFTs.

How to read the key boxes on Form 1099-DA

Start with box 1f for proceeds and box 1g for cost or other basis. Box 2 tells you whether the broker reported basis to the IRS. Box 9 flags a noncovered asset when checked. Entering zero solely because box 1g is blank can overstate your gain. See the IRS instructions for Form 1099-DA.

Suppose you bought crypto for $3,000, moved it to another exchange, and sold it for $5,000. With no fees or other adjustments, the sale produced a $2,000 gain. The selling exchange may show only the $5,000 in proceeds. Your original purchase record supplies the $3,000 basis that completes the calculation.

How to report crypto sales on Form 8949 and Schedule D

Use the broker statement and your transaction records together to calculate each reportable gain or loss. Start with the sale shown on Form 1099-DA and trace the units back to their acquisition.

Match broker statements to exchange and wallet records

In the $5,000 example, the selling exchange's history confirms the sale and the number of units sold. The original exchange's purchase history provides the acquisition date and cost. Transfer records connect the withdrawal from one exchange to the deposit at the other. If you paid fees to buy the crypto, include eligible acquisition costs in your basis.

Report the gain or loss on the tax return

For crypto held as an investment, you generally report sales on Form 8949 and carry the totals to Schedule D. A holding period of one year or less generally produces a short-term gain or loss. A holding period longer than one year generally produces a long-term gain or loss. Some sales qualify for direct reporting on Schedule D. The broker must have reported basis to the IRS and the sale must meet the other conditions in the Form 8949 instructions, including that you need no adjustments.

Form 1099-DA FAQ

Do I report crypto sales if I never receive Form 1099-DA?

Report taxable sales and exchanges even when a foreign exchange or another platform issues no form.

Does moving crypto between my own wallets count as a sale?

Moving crypto between wallets you own generally creates no gain or loss by itself. Paying the transfer fee in crypto can create a separate reportable disposition.

Does Form 1099-DA include staking rewards?

Brokers do not report the receipt of staking rewards on Form 1099-DA. Receiving staking rewards can generate income even if you keep the tokens. Selling them later is a separate transaction that can produce a gain or loss.

What if my Form 1099-DA shows incorrect proceeds?

Ask the issuer for a corrected form and keep copies of your statements and correspondence. The IRS advises filing on time even if the correction is pending.

Conclusion

Use Form 1099-DA as a starting point for reporting crypto sales. Confirm the tax year, verify your basis against your purchase records, and include taxable transactions missing from the statement.

This information covers general U.S. federal tax rules. A qualified tax professional can address your individual circumstances.