Crypto Tax Records: What to Keep Before Tax Season (and the 1099-DA Gap They Fill)
Tax season is still months away, so why are your crypto records already a problem? Because the form your exchange sends the IRS reports what you received, not what you paid — and only your own records can prove the difference. For the 2025 tax year, custodial brokers reported gross proceeds on the new Form 1099-DA. Cost-basis reporting only starts with 2026 sales, and only for some lots. That gap is exactly what your records exist to fill — and December 31 is the last day of the tax year to get them in order. Your 1099-DA Shows Proceeds. Your Records Prove Basis. For 2025 sales, brokers reported gross proceeds only. Basis reporting starts with 2026 sales — and only for some lots. Form 1099-DA is the IRS's dedicated return for digital-asset broker transactions. Custodial brokers — centralized exchanges, hosted wallets, some payment processors — must report sales on it for transactions on or after January 1, 2025. The IRS phases the reporting in: gross proceeds first, basis late...