{
 "title": "Form 1099-DA reporting rules for ETH holders (U.S.)",
 "source_page": "https://growyourethereum.com/guides/form-1099-da-explained",
 "updated": "2026-10-23",
 "license": "CC-BY-4.0",
 "status": {
  "gross_proceeds_reporting": "sales on or after 2025-01-01",
  "basis_reporting": "covered digital assets acquired in a custodial account on or after 2026-01-01, sold from 2026",
  "defi_broker_rule": "repealed by Pub. L. 119-5 (2025-04-10); removed from CFR 2025-07-11",
  "non_us_brokers": "reserved pending CARF regulations",
  "backup_withholding_relief": "sales in 2025 and 2026 (Notice 2025-33)",
  "specific_id_relief": "through 2026-12-31 (Notice 2026-20)",
  "pending_legislation": "H.R. 10357 Sec. 501 (ordered reported 2026-09-16; not law)"
 },
 "thresholds": {
  "pdap_sales_usd": 600,
  "qualifying_stablecoin_designated_sales_usd": 10000,
  "specified_nft_sales_usd": 600,
  "form_1099_misc_rewards_usd": {
   "2025": 600,
   "2026_onward": 2000
  }
 },
 "form_8949_boxes": {
  "G": "short-term, basis reported",
  "H": "short-term, basis not reported",
  "I": "short-term, no 1099-DA",
  "J": "long-term, basis reported",
  "K": "long-term, basis not reported",
  "L": "long-term, no 1099-DA",
  "Y": "1099-DA code: holding period unknown"
 },
 "rules": [
  {
   "id": "sell-usd-2025",
   "scenario": "Sell ETH for dollars",
   "where": "U.S. custodial exchange or app",
   "sale_years": "2025",
   "form": "1099-DA",
   "proceeds_reported": "Yes (box 1f, net of fees)",
   "basis_reported": "Not required (broker may report voluntarily)",
   "form_8949_box_short_term": "H (or G if basis reported, box 2 checked)",
   "form_8949_box_long_term": "K (or J if basis reported)",
   "threshold": "None",
   "note": "Code Y in the “Applicable checkbox” when basis is not reported: you pick H or K from your own holding period.",
   "source": "https://www.irs.gov/pub/irs-prior/i1099da--2025.pdf"
  },
  {
   "id": "swap-crypto-2025",
   "scenario": "Swap ETH for another token on the exchange",
   "where": "U.S. custodial exchange or app",
   "sale_years": "2025",
   "form": "1099-DA",
   "proceeds_reported": "Yes (fair value received)",
   "basis_reported": "Not required",
   "form_8949_box_short_term": "H (or G)",
   "form_8949_box_long_term": "K (or J)",
   "threshold": "None",
   "note": "A crypto-to-crypto trade is a sale of the ETH you gave up.",
   "source": "https://www.irs.gov/pub/irs-prior/i1099da--2025.pdf"
  },
  {
   "id": "sell-covered",
   "scenario": "Sell ETH bought in the same account on or after Jan 1, 2026",
   "where": "U.S. custodial exchange or app",
   "sale_years": "2026+",
   "form": "1099-DA",
   "proceeds_reported": "Yes",
   "basis_reported": "Yes, required (covered security)",
   "form_8949_box_short_term": "G",
   "form_8949_box_long_term": "J",
   "threshold": "None",
   "note": "Box 2 checked. Basis follows the broker’s lot order (FIFO unless you gave a specific identification), which may differ from your own records in 2026 (Notice 2026-20).",
   "source": "https://www.irs.gov/instructions/i1099da"
  },
  {
   "id": "sell-old-lot",
   "scenario": "Sell ETH bought in that account before 2026",
   "where": "U.S. custodial exchange or app",
   "sale_years": "2026+",
   "form": "1099-DA",
   "proceeds_reported": "Yes",
   "basis_reported": "Not required (noncovered; box 9 may be checked)",
   "form_8949_box_short_term": "H (or G if basis reported)",
   "form_8949_box_long_term": "K (or J if basis reported)",
   "threshold": "None",
   "note": "You supply the basis on Form 8949.",
   "source": "https://www.irs.gov/instructions/i1099da"
  },
  {
   "id": "sell-transferred-in",
   "scenario": "Sell ETH you transferred in from another wallet or exchange",
   "where": "U.S. custodial exchange or app",
   "sale_years": "2026+",
   "form": "1099-DA",
   "proceeds_reported": "Yes",
   "basis_reported": "Not required (noncovered); boxes 12a/12b show units and date transferred in",
   "form_8949_box_short_term": "H",
   "form_8949_box_long_term": "K",
   "threshold": "None",
   "note": "The receiving broker may use your acquisition info to pick lots but may not report it as basis (broker FAQ Q3, Q7).",
   "source": "https://www.irs.gov/instructions/i1099da"
  },
  {
   "id": "swap-crypto-2026",
   "scenario": "Swap ETH for another token on the exchange",
   "where": "U.S. custodial exchange or app",
   "sale_years": "2026+",
   "form": "1099-DA",
   "proceeds_reported": "Yes",
   "basis_reported": "Yes if the ETH is covered; otherwise optional",
   "form_8949_box_short_term": "G/H",
   "form_8949_box_long_term": "J/K",
   "threshold": "None",
   "note": "Each leg that disposes of crypto is a sale.",
   "source": "https://www.irs.gov/instructions/i1099da"
  },
  {
   "id": "fee-in-eth",
   "scenario": "Pay an exchange fee in ETH",
   "where": "U.S. custodial exchange or app",
   "sale_years": "2025+",
   "form": "1099-DA",
   "proceeds_reported": "Yes (may be combined with the trade it paid for)",
   "basis_reported": "As for the trade",
   "form_8949_box_short_term": "As for the trade",
   "form_8949_box_long_term": "As for the trade",
   "threshold": "None",
   "note": "Units withheld from what you received to pay the fee need not be reported separately (broker FAQ Q12).",
   "source": "https://www.irs.gov/instructions/i1099da"
  },
  {
   "id": "stablecoin-sale",
   "scenario": "Sell USDC/USDT for dollars or use them to pay",
   "where": "U.S. custodial exchange or app",
   "sale_years": "2025+",
   "form": "1099-DA (aggregate, if over threshold)",
   "proceeds_reported": "Aggregate per stablecoin if over $10,000 a year",
   "basis_reported": "No (optional method)",
   "form_8949_box_short_term": "H/G",
   "form_8949_box_long_term": "K/J",
   "threshold": "$10,000 a year of designated stablecoin sales, per broker",
   "note": "Applies when the broker uses the optional stablecoin method. A swap of USDC for ETH is not a designated sale.",
   "source": "https://www.irs.gov/instructions/i1099da"
  },
  {
   "id": "nft-sale",
   "scenario": "Sell an NFT",
   "where": "U.S. custodial marketplace",
   "sale_years": "2025+",
   "form": "1099-DA (aggregate, if over threshold)",
   "proceeds_reported": "Aggregate if over $600 a year",
   "basis_reported": "No (optional method)",
   "form_8949_box_short_term": "H/G",
   "form_8949_box_long_term": "K/J",
   "threshold": "$600 a year of specified-NFT sales",
   "note": "First sales by the creator go in box 11c.",
   "source": "https://www.irs.gov/instructions/i1099da"
  },
  {
   "id": "spend-processor",
   "scenario": "Pay a merchant with ETH through a crypto payment processor",
   "where": "U.S. payment processor (PDAP)",
   "sale_years": "2025+",
   "form": "1099-DA (if over threshold)",
   "proceeds_reported": "Yes, all sales once over $600 a year",
   "basis_reported": "As for any sale",
   "form_8949_box_short_term": "G/H",
   "form_8949_box_long_term": "J/K",
   "threshold": "$600 a year of PDAP sales",
   "note": "Spending ETH is a taxable disposal at any amount.",
   "source": "https://www.irs.gov/instructions/i1099da"
  },
  {
   "id": "staking-rewards",
   "scenario": "Staking rewards credited",
   "where": "U.S. custodial exchange or app",
   "sale_years": "2025+",
   "form": "Not 1099-DA (often 1099-MISC)",
   "proceeds_reported": "No",
   "basis_reported": "No",
   "form_8949_box_short_term": "—",
   "form_8949_box_long_term": "—",
   "threshold": "1099-MISC: $600 (2025), $2,000 (payments after 2025)",
   "note": "“Do not report rewards and staking payments on Form 1099-DA.” Rewards are ordinary income when you get control of them (Rev. Rul. 2023-14).",
   "source": "https://www.irs.gov/instructions/i1099da"
  },
  {
   "id": "wrap-stake-lend",
   "scenario": "Wrap ETH, stake it, lend it, provide liquidity or short-sell",
   "where": "U.S. custodial exchange or app",
   "sale_years": "2025+",
   "form": "None (until further guidance)",
   "proceeds_reported": "No",
   "basis_reported": "No",
   "form_8949_box_short_term": "—",
   "form_8949_box_long_term": "—",
   "threshold": "Notice 2024-57",
   "note": "Brokers don’t report these transactions yet. Whether they are taxable is a separate question you still have to answer.",
   "source": "https://www.irs.gov/irb/2024-29_IRB#NOT-2024-57"
  },
  {
   "id": "defi-wallet",
   "scenario": "Swap on a DEX or sell from your own wallet",
   "where": "Self-custody wallet / DeFi",
   "sale_years": "2025+",
   "form": "None",
   "proceeds_reported": "No",
   "basis_reported": "No",
   "form_8949_box_short_term": "I",
   "form_8949_box_long_term": "L",
   "threshold": "—",
   "note": "The DeFi broker rule (TD 10021) was repealed by Pub. L. 119-5 on April 10, 2025. You report every taxable trade yourself.",
   "source": "https://www.govinfo.gov/content/pkg/PLAW-119publ5/html/PLAW-119publ5.htm"
  },
  {
   "id": "foreign-exchange",
   "scenario": "Sell ETH on a non-U.S. exchange",
   "where": "Foreign exchange",
   "sale_years": "2025+",
   "form": "Generally none",
   "proceeds_reported": "No",
   "basis_reported": "No",
   "form_8949_box_short_term": "I",
   "form_8949_box_long_term": "L",
   "threshold": "—",
   "note": "Only U.S. digital asset brokers must file. Rules for non-U.S. brokers are reserved until the OECD CARF rules are adopted.",
   "source": "https://www.irs.gov/businesses/understanding-your-form-1099-da"
  },
  {
   "id": "eth-etf",
   "scenario": "Sell spot ETH ETF shares",
   "where": "Stock brokerage",
   "sale_years": "2025+",
   "form": "1099-B (shares are securities)",
   "proceeds_reported": "Yes",
   "basis_reported": "Yes for covered shares",
   "form_8949_box_short_term": "A/B",
   "form_8949_box_long_term": "D/E",
   "threshold": "—",
   "note": "Not a 1099-DA. The trust’s own ETH sales (for example to pay the sponsor fee) flow through on its grantor-trust tax statement.",
   "source": "https://www.irs.gov/instructions/i1099da"
  },
  {
   "id": "transfer-own",
   "scenario": "Move ETH between your own wallets or accounts",
   "where": "Any",
   "sale_years": "2025+",
   "form": "None",
   "proceeds_reported": "No",
   "basis_reported": "No",
   "form_8949_box_short_term": "—",
   "form_8949_box_long_term": "—",
   "threshold": "—",
   "note": "Not a sale. A receiving broker shows the transfer-in date and units (boxes 12a/12b) when you later sell.",
   "source": "https://www.irs.gov/filing/digital-assets"
  }
 ],
 "boxes": [
  {
   "box": "Applicable checkbox on Form 8949",
   "label": "G, H, J, K or Y",
   "meaning": "Which Form 8949 box to use. G/J = basis reported to the IRS; H/K = basis not reported; Y = broker doesn’t know your holding period (common for 2025)."
  },
  {
   "box": "1a",
   "label": "Code for digital asset",
   "meaning": "The 9-character Digital Token Identifier (DTI) for the asset, or 999999999 if it has none."
  },
  {
   "box": "1b",
   "label": "Name of digital asset",
   "meaning": "For example Ether."
  },
  {
   "box": "1c",
   "label": "Number of units",
   "meaning": "Units sold, to 18 decimal places."
  },
  {
   "box": "1d",
   "label": "Date acquired",
   "meaning": "Blank for 2025 sales without basis, mixed-date lots and most noncovered sales."
  },
  {
   "box": "1e",
   "label": "Date sold or disposed",
   "meaning": "The trade date."
  },
  {
   "box": "1f",
   "label": "Proceeds",
   "meaning": "Gross proceeds after fees. Copy this to Form 8949 column (d)."
  },
  {
   "box": "1g",
   "label": "Cost or other basis",
   "meaning": "Required only for covered ETH (bought in that account from Jan 1, 2026). Blank does not mean $0: enter your real cost."
  },
  {
   "box": "1h / 1i",
   "label": "Market discount / wash sale loss disallowed",
   "meaning": "For debt-like tokens and tokenized securities. Box 1i stays blank for ETH: wash sales don’t apply to it under current law."
  },
  {
   "box": "2",
   "label": "Basis reported to IRS",
   "meaning": "Checked = the IRS has the broker’s basis figure. Use box G or J on Form 8949."
  },
  {
   "box": "4",
   "label": "Federal income tax withheld",
   "meaning": "Backup withholding. Brokers have relief through 2026 (Notice 2025-33)."
  },
  {
   "box": "6",
   "label": "Gain or loss",
   "meaning": "Short-term, long-term and/or Ordinary."
  },
  {
   "box": "8",
   "label": "Broker relied on customer-provided acquisition info",
   "meaning": "Your own purchase data was used to choose which lots were sold."
  },
  {
   "box": "9",
   "label": "Noncovered security",
   "meaning": "Basis, if shown, wasn’t required and may be incomplete."
  },
  {
   "box": "11a–11c",
   "label": "Aggregate reporting",
   "meaning": "Stablecoin or NFT totals reported under the optional methods."
  },
  {
   "box": "12a / 12b",
   "label": "Units transferred in / transfer-in date",
   "meaning": "ETH you moved in from elsewhere. The broker doesn’t know what you paid."
  }
 ],
 "timeline": [
  {
   "date": "2021-11-15",
   "event": "Infrastructure Investment and Jobs Act §80603 adds digital assets to broker reporting (IRC §6045)."
  },
  {
   "date": "2024-07-09",
   "event": "Final custodial broker regulations (TD 10000) published: gross proceeds from 2025, basis from 2026."
  },
  {
   "date": "2024-07-15",
   "event": "Notice 2024-56 (transition relief) and Notice 2024-57 (wrapping, staking, lending, LP and short sales not reported yet)."
  },
  {
   "date": "2024-12-30",
   "event": "DeFi “front-end” broker rule (TD 10021) published."
  },
  {
   "date": "2025-01-01",
   "event": "Brokers start tracking 2025 sales for gross proceeds reporting. Wallet-by-wallet basis rules begin (Rev. Proc. 2024-28 transition)."
  },
  {
   "date": "2025-04-10",
   "event": "Pub. L. 119-5 (H.J. Res. 25) repeals the DeFi broker rule. The IRS removed it from the regulations on July 11, 2025."
  },
  {
   "date": "2025-09-25",
   "event": "IRS FS-2025-06: most 2025 statements will not show basis; DeFi and some foreign brokers won’t send one."
  },
  {
   "date": "2026-01-01",
   "event": "Basis reporting starts for covered digital assets bought in a custodial account from this date."
  },
  {
   "date": "2026-01-07",
   "event": "IRS posts corrections to the 2025 instructions: $600 PDAP, $10,000 stablecoin and $600 NFT de minimis rules."
  },
  {
   "date": "2026-02-17",
   "event": "First Forms 1099-DA (2025 sales) due to customers."
  },
  {
   "date": "2026-03-05",
   "event": "Proposed regulations (IR-2026-29) would let brokers deliver 1099-DA electronically without a paper option, for statements furnished from 2027."
  },
  {
   "date": "2026",
   "event": "Notice 2026-20 extends specific-identification relief through Dec 31, 2026; Notice 2025-33 extends backup withholding relief through 2026."
  },
  {
   "date": "2027-02",
   "event": "First 1099-DAs that include cost basis (2026 sales of covered ETH)."
  },
  {
   "date": "2028",
   "event": "H.R. 10357 Sec. 501 would trim 1099-DA reporting for statements due after Dec 31, 2027 (pending bill, not law)."
  }
 ],
 "sources": [
  "https://www.irs.gov/instructions/i1099da",
  "https://www.irs.gov/pub/irs-prior/i1099da--2025.pdf",
  "https://www.irs.gov/filing/digital-assets",
  "https://www.irs.gov/businesses/understanding-your-form-1099-da",
  "https://www.irs.gov/irb/2024-29_IRB#NOT-2024-57",
  "https://www.irs.gov/pub/irs-drop/n-25-33.pdf",
  "https://www.irs.gov/filing/frequently-asked-questions-about-broker-reporting",
  "https://www.govinfo.gov/content/pkg/PLAW-119publ5/html/PLAW-119publ5.htm",
  "https://www.govinfo.gov/content/pkg/FR-2025-07-11/pdf/2025-13005.pdf",
  "https://www.irs.gov/instructions/i8949"
 ]
}