Quick answer: For 2026 transactions, Form 1099-DA reporting includes required basis information for covered digital assets and generally voluntary basis reporting for noncovered assets, subject to the applicable reporting rules. A missing basis figure does not prove that your cost was zero. Keep your own acquisition, transfer, and disposal records alongside broker statements.
Sources checked: September 10, 2026.
The IRS’s 2026 instructions are the starting point for checking these reporting categories. Distinguish transactions during calendar year 2026 from the forms and returns generally prepared after that year ends. A form received during 2026 may concern the previous tax year. IRS instructions for Form 1099-DA.
What covered and noncovered mean here
For this reporting purpose, covered assets generally include digital assets acquired after 2025 in the reporting broker’s custodial account and kept there until disposition. Pre-2026 acquisitions and assets transferred into a broker are among the noncovered categories. These are information-reporting labels; “noncovered” does not mean tax free. IRS definitions and reporting instructions.
Two sales of the same token can therefore produce different statement information. Preserve the original acquisition evidence and connect it to the disposal.
Proceeds and profit are different numbers
Consider a hypothetical investment purchase costing $1,000 in total, including the acquisition costs properly included in basis. Later, the asset is sold with $1,200 of proceeds after the selling costs properly reflected in that amount. Under these simplified assumptions, the gain is $200.
If a statement shows the $1,200 proceeds without the acquisition information, treating the entire amount as profit would miss the cost of obtaining the asset. Actual treatment depends on the transaction, allocation, and applicable rules; the example illustrates why reconciliation matters.
The IRS explains that calculating a capital gain or loss requires information including the asset, date and time, units, value, and basis. Its digital asset guidance also describes the records taxpayers should retain. IRS digital asset reporting guidance.
Build one record for each event
| Field | Example of what to retain |
|---|---|
| Event identity | Transaction ID or exchange trade reference |
| Timing | Date, time, and timezone |
| Asset quantity | Token identity and exact units |
| US dollar value | Value at the event and the supporting price source |
| Costs | Fee amount, fee currency, and supporting statement |
| Account route | Origin and destination account or wallet |
| Event type | Acquisition, disposal, income, or transfer for review |
This template organizes evidence rather than determining tax treatment. Preserve original exports and explain adjustments to your working totals.
Preserve the fee currency. A token-denominated charge needs enough detail for review, rather than becoming an unexplained dollar adjustment.
Reconcile transfers before reviewing the final totals
Suppose you move an asset from Wallet A to Exchange B and later sell it. An import tool may see an outgoing event, an incoming event, and a sale. Without matching the first two records, its report may misclassify the movement or fail to carry the acquisition history into the sale.
Match transaction references, timestamps, quantities, and network fees. If the numbers differ, investigate the difference instead of forcing a match. Wrapped assets, bridges, swaps, gifts, and changes in ownership can require different analysis from a straightforward movement between your own accounts.
For capital assets, exchanging one cryptocurrency for another can also produce a gain or loss; it is not necessary to receive dollars first. The IRS discusses exchanges of virtual currency for other property, including another virtual currency. IRS virtual currency transaction FAQ.
Resolve missing information while records are available
Export histories from closed accounts and inactive wallets too. Reconcile statements, document differences, and request corrections where appropriate. Ask a qualified US tax professional to review uncertain classifications and your return.
Review export features using Trade Start Lab’s trading tools guide and transaction costs using its fees guide. Neither determines tax treatment.
Frequently asked questions
Does a blank cost basis mean zero cost?
No. It can reflect missing or nonrequired broker information. Establish the actual basis from reliable records instead of assuming a blank is zero.
Do I ignore transactions that have no broker form?
No. A broker statement does not define the full scope of your reporting obligations. Review your transactions under the applicable tax rules.
Does this guide apply to taxpayers outside the United States?
It addresses US federal reporting concepts. Other countries have different rules, and cross-border circumstances can require professional advice.
General US federal tax education only. A qualified tax professional should assess your facts and filing obligations.
Get a free platform and fee check
Tell us your country, platform, or trading question. We will reply with a short research checklist—not a profit promise.