Confusing TT instructions for mailing 1099-DA - require calculating gains for every digital transaction

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I have a broker 1099-DA that lists noncovered digital transactions. It shows proceeds and cost for each transaction, but not the gain. It then adds all the proceeds and costs, and reports the total short and long term gains. But the TT instructions for mailing the 1099-DA say I must report "gain or loss for EACH SALE". If the 1099 already shows the proceeds and cost for each sale, what am I supposed to do, use a hand calculator for each of hundreds of transactions and then hand-write the results on the pdf 1099-DA from the broker?

Karis_F

Employee Tax Expert

You do not need to calculate the gain/loss for each sale and write it on the Form 1099-DA before mailing it to the IRS. The gain/loss is already calculated on the tax return. The IRS requirement is to send them a copy of Form 1099-DA.

Here is a TurboTax article about Form 1099-DA for more information.

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johnp22Author

Level 2

The Gain/Loss for EACH TRANSACTION is NOT calculated in the tax return. Only the TOTAL gain/loss for all crypto transactions is reported under codes H and K, which was summarized on the cover page of my Fidelity 1099-DA. The 1099-DA transaction detail pages say these are noncovered digital assets so the info reported to the IRS does NOT include "cost basis, acquisition date and holding period", even though all this data is included in the 1099-DA sent to me. The only thing not included in my 1099-DA is the gain/loss for each sale. I have researched numerous sources and they all say I still must calculate this myself. Makes no sense - if I mail the 1099-DA with all the cost data, acquisition date and holding period, the IRS has all the support data it needs if an audit were required.

JamesG1

Alumni - Intuit

You are reporting an IRS form 1099-DA by sales section total? That is the reason that you are forwarding a copy of the form to the IRS?

Since 'cost basis' was not forwarded to the IRS, you would select I need to adjust my total cost basis, select code B (cost basis incorrect on form) and the adjustment amount.

You may but you would not have to compute each transaction line since you are reporting by sales section total.

@johnp22

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