All taxpayers are required to report gains and losses realized from sales of digital assets just as they would for sales of any other stock, mutual fund or other investment assets held in a non-retirement account. Below is what you need to know about the new IRS crypto reporting changes:
- For 2025, all crypto exchanges are required to report to the IRS the sale proceeds from digital asset transactions using the new Form 1099-DA. Plus, for 2025, the cost basis of the digital asset does not need to be reported.
- Starting in 2026, Form 1099-DA will include the applicable cost basis of the digital asset sold in addition to the gross proceeds from the sale.
Anyone who sold digital assets in the past can attest that properly calculating the gain or loss realized from cyrpto sales has been an extremely challenging task. These new rules along with the Form 1099-DA should make reporting gains and losses much easier for digital asset traders going forward.