Investors & landlords

Enter DEX or Digital Asset Exchange  for the name of the Digital Asset Service, it should allow you to move forward. You can always choose 'Other' category to enter your transaction if you prefer. This is used for many investment transactions that may not be named.

Your IRS form 1099-DA reports gross proceeds, the digital asset, the number of units and the number of transactions.

1. Select Wages & Income.
2. Scroll to Investments and Savings.
3. Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) >  Add investments.
4. On the Save time and connect your financial accounts screen, select Enter a different way > Select Type it in myself, then Continue.
5. OK, let's start with one investment type, select Digital Assets > Click Continue.
6. On the screen Which bank or brokerage is on your 1099-DA, enter the information > Continue.
7. On the screen Did you get a 1099-DA from XXX?, select Yes.  Click Continue.
8. Answer the questions at the screen Tell us about the sales on your 1099-DA

Test Scenario:

When I test a scenario I entered the following:

1. Number of units: .0000000567
2. Sales date: 12/31/2025
3. Proceeds: 0 (entered the zero)
4. On the screen 'Let us know if any of these situations apply to this sale' I selected 'None of these apply'

Any digital currency you purchase becomes income at the time you redeem or sell the digital currency and must be reported .

• Cryptocurrency Guide (digital currency)

Holding Periods:

• Long term is a holding period of more than one year (one year plus one day) and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax)
• Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate)