Summary
Brokers are required to report proceeds from digital asset dispositions to both you and the IRS on Form 1099-DA by 2025. You may need to recognize gains from these transactions.
Key Points
1. Brokers are required to report proceeds from digital asset dispositions to both the individual and the IRS on Form 1099-DA.
2. The individual may also be required to report the basis for digital asset dispositions to the IRS.
3. Individuals may be required to recognize gain from the dispositions of digital assets, indicating potential tax implications for these transactions.