Technical Definition

Form 1099-DA

Form 1099-DA is a United States tax information form used by applicable brokers to report digital asset sales or dispositions to customers and the IRS.

By Crypto University Editorial
Cost basisTaxable eventFIFO

✦ Key Insight

U.S. crypto users may need information from Form 1099-DA when preparing tax returns and reconciling broker-reported transactions.

✕ Common Misconceptions

Do not assume that transactions absent from a 1099-DA can be ignored. Taxpayers remain responsible for required reporting.

Detailed Explanation

The form reports information about certain digital asset broker transactions. Depending on the reporting year and asset, information can include proceeds and, in some cases, basis. Receiving or not receiving the form does not by itself determine whether a transaction is taxable.

In Practice

“A U.S. broker reporting a customer's covered digital asset sale may issue Form 1099-DA showing the asset and proceeds.”

Dig Deeper

Cost basis

Cost basis is the tax value assigned to an asset, generally based on acquisition cost and applicable adjustments, that is used when calculating gain or loss.

FIFO

FIFO is an accounting identification method that treats the earliest acquired units of an asset as the first units disposed of when applicable rules require or permit that method.

Taxable event

A taxable event is a transaction or activity that creates a tax consequence under the rules of the relevant jurisdiction.

Capital Gain

A capital gain is the positive difference recognized when a capital asset is disposed of for more than its tax basis.