Short answer. Brokers report gross proceeds on Form 1099-DA for transactions on or after January 1, 2025, and basis for certain transactions starting in 2026: generally assets bought after 2025 in the same custodial account they were sold from. For everything else, the basis comes from your records. Match each row to your transaction history by asset, units, date sold and proceeds, fill in the basis where it's missing, and put each sale in the right Form 8949 box: G or J when the form reports basis to the IRS, H or K when it doesn't, I or L for sales with no 1099-DA.
Read the boxes first
| Box | What it shows |
|---|---|
| 1a, 1b | The digital asset's token code and name |
| 1c | Units sold, to as many as 18 decimal places |
| 1d, 1e | Date acquired (blank if the units were bought on different dates) and date sold |
| 1f | Gross proceeds, reduced by transaction costs such as fees |
| 1g | Cost or other basis, when the broker reports it |
| 2 | Checked when basis is reported to the IRS |
| 9 | Checked for a noncovered security, where the broker doesn't have to report basis |
| 12a, 12b | Units transferred into the account and the transfer date, when the units sold came in from elsewhere |
A covered digital asset, under the 2026 instructions, is one acquired after 2025 in a custodial account and held there until the broker sold it. Coins acquired before 2026, or transferred in, are generally noncovered. The IRS broker FAQ adds that a broker may not use the transferring broker's information to report your basis.
Step by step
- Collect everything. Every Form 1099-DA you received, and the full transaction history for the year (and earlier years, for basis) from every exchange and wallet, including transfers in and out.
- Make one row per sale on the form. Copy asset, units, date sold, proceeds, basis, and the box 2, box 9 and box 12 entries.
- Find each sale in your own history. Match on asset, units and date. A sale that lists a transfer-in date in box 12b came from coins you moved in; follow them back to where you bought them.
- Fill in missing basis. Basis is what it cost to acquire the asset, including fees, commissions and transfer taxes. Use the purchase records from the original exchange or wallet.
- Set the holding period. Generally, more than one year from acquisition to sale is long-term. Use your original purchase date, not the transfer-in date.
- Choose the Form 8949 box. Short-term: G (basis reported to the IRS), H (basis not reported), I (no 1099-DA). Long-term: J, K, L in the same order. The instructions say not to use boxes C or F for digital assets.
- Fix what the form got wrong. If basis was reported to the IRS but is wrong, enter the basis as shown and correct it in column (g) with code B. If basis wasn't reported, enter the correct basis in column (e). Use code E for transaction costs the form doesn't reflect.
- Add what isn't on any form. Sales and swaps outside a custodial broker still get reported, in box I or L. And answer the digital asset question on Form 1040, which asks whether you received, sold, exchanged or otherwise disposed of a digital asset during the year.
Two rows from a 2026 Form 1099-DA
Row 1: 0.25 BTC sold March 14, 2026 for proceeds of $16,400. Box 1d is blank, box 1g is blank, box 9 is checked, and box 12a/12b show 0.25 units transferred in on January 5, 2026.
The owner's records show those coins were bought on another exchange in August 2023 for $7,100 including fees, then moved over in January. The coins are noncovered, the holding period runs from August 2023, so this is long-term with basis not reported: box K, basis $7,100, gain $9,300.
Row 2: 3 ETH sold September 2, 2026 for proceeds of $7,950. Box 1d shows February 10, 2026, box 1g shows $8,400, and box 2 is checked. Bought and sold in the same account after 2025, so it's covered and short-term with basis reported: box G. The owner's records match the broker's basis, so the loss is $450. If the records had shown a fee the form didn't include, code E would apply.
The owner also swapped tokens in a self-custody wallet in June. No broker reported that, so it goes in box I from the owner's own records.
Thresholds that can make rows look missing
Under the 2026 instructions, brokers don't have to report designated sales of qualifying stablecoins if your total proceeds from them for the year are $10,000 or less. Specified NFTs can be left off under the optional method if total proceeds are $600 or less. A missing row may be one of these, not an error, but the sale still belongs on your return.
Records to keep
The IRS asks you to keep records of purchases, receipts, sales, exchanges and other dispositions, plus the fair market value in dollars of anything you received as income. Download histories before an account closes, and keep a list of every wallet and account so transfers don't look like new purchases.
Official sources
- IRS: Instructions for Form 1099-DA (2026)
- IRS: Frequently asked questions about broker reporting (updated Oct. 30, 2026)
- IRS: Digital assets (updated Sept. 2, 2026)
- IRS: Instructions for Form 8949 (2025)
Checked November 2026 on irs.gov and nj.gov.
Common questions
Why is there no cost basis on my Form 1099-DA?
Brokers must report basis only for covered digital assets: generally those acquired after 2025 in the same custodial account. Coins bought earlier or transferred in are usually noncovered, and box 9 may be checked.
The broker's basis is wrong. What do I do?
If the form shows basis was reported to the IRS, enter it as shown on Form 8949 and correct it in column (g) with code B. If basis wasn't reported, enter the correct basis in column (e).
Do I report crypto sales that aren't on a 1099-DA?
Yes. Use Form 8949 box I for short-term or box L for long-term digital asset sales with no Form 1099-DA.
What does box 9 mean on Form 1099-DA?
It marks the sale of a noncovered security, for which the broker isn't required to report basis.
Can my new exchange use my old exchange's purchase prices?
Not for reporting basis. The IRS broker FAQ says a broker may use the transferring broker's information to identify which units were sold, but not to report basis on Form 1099-DA.
Related guides: Tax documents checklist for 2027 · Cryptocurrency records for business owners