What is Form 1099-DA and what do I need to know for my 2025 crypto taxes?

Form 1099-DA is a new IRS tax form that custodial crypto brokers (Coinbase, Kraken, Gemini, etc.) are required to issue starting with 2025 transactions. It's the crypto equivalent of the 1099-B you get for stock sales.

What 1099-DA reports for 2025:

• Gross proceeds from your crypto sales and exchanges — i.e., what you received.
• For 2025, brokers are not required to report your cost basis (what you paid). Some may report it voluntarily. Mandatory cost basis reporting begins in 2026.

What this means for you:

• You will likely receive a 1099-DA from each custodial exchange where you sold or traded crypto in 2025.
• You must still calculate your own gain or loss = sale price minus your cost basis (what you originally paid).
• If your broker doesn't report your basis, the IRS may see only the gross proceeds — making it look like you owe tax on the full amount. You need to correct this on your return with accurate basis information.
• Report crypto gains and losses on Form 8949 and summarize on Schedule D, exactly like stock trades.

DeFi and non-custodial wallets:

• 1099-DA only applies to custodial brokers. Transactions on decentralized exchanges (Uniswap, etc.) and transfers between personal wallets are not covered by broker reporting — but you are still required to report those gains.

Key rules that haven't changed:

• Crypto is still treated as property for tax purposes — every sale, trade, or use to buy goods/services is a taxable event.
• Holding longer than 1 year qualifies for long-term capital gains rates (0%, 15%, or 20%).
• Receiving crypto as income (mining, staking, airdrops) is taxed as ordinary income at the fair market value when received.

If you haven't kept records: Use crypto tax software (Koinly, CoinTracker, TaxBit) to reconstruct your transaction history across all wallets and exchanges.