CoinLedger

The wait is over. Introducing Portfolio by @CoinLedger, our newest product. Sign up for free.

@David_Kemmerer If you want to learn more about 1099-DA, here is a full blog post we wrote on it: coinledger.io/blog/form-1099…

Your 1099-DA probably has errors on it. And those errors could cost you thousands. The IRS started issuing Form 1099-DA this year for crypto. Problem is, the data on these forms is riddled with mistakes. Here are 5 errors I'm seeing on almost every 1099-DA: → Missing or incorrect cost basis (exchanges don't talk to each other, so your basis shows as $0) → Incorrect proceeds (the form might pull a different price source than what you actually received) → Wrong accounting method (FIFO, LIFO, HIFO — your form might use a different method than you do) → Transfers reported as disposals (moving crypto between your own wallets shouldn't be taxable) → Purchases shown as sales (buying crypto with crypto can get misclassified) Every one of these inflates your tax bill if you don't catch it. The fix: reconcile your full transaction history with a tool like CoinLedger, report the correct numbers on Form 8949, and attach a statement showing your math. Don't just file what the form says. File what's actually accurate. Comment "1099" and I'll send you a walkthrough on how to fix these (must be following so I can DM you).

Tax Tip: If your crypto losses exceed your gains for the year, you can offset up to $3,000 of ordinary income (like income from your job). Any remaining losses carry forward to future tax years. e.g. $10,000 crypto loss with no gains this year? Offset $3,000 of your income now, carry $7,000 forward to next year.

The proceeds on your Form 1099-DA might not match your records exactly. This usually happens because of differences in cryptocurrency price oracles. Use the 1099-DA numbers when filing. That's what your exchange reported to the IRS, and matching it can help you avoid scrutiny.

@Fixmygirlfrien1 Yep! CoinLedger calculates your capital gains and losses across all of your wallets and exchanges, preventing issues like these.

@CoinLedger And coinledger tax software takes care of this correct? Isn't that what we are paying for?

Tax Tip: Your Form 1099-DA is probably incomplete. If you transferred crypto into your exchange from other wallets on exchanges, your Form 1099-DA likely won't contain data about your original cost basis. That means your capital gains may be overstated.

Income from the following transactions is reported on Form 1099-MISC: - Staking rewards - Referral bonuses - Airdrops - Interest earned on your crypto - Promotional rewards All of this counts as ordinary income and is taxed at 10-37% based on your bracket.

You have to report crypto interest under $600. Exchanges only send you a 1099-MISC if you earned more than $600, but the IRS still expects you to report everything. Won't make a huge difference on your tax bill, but it keeps you compliant and shows good faith reporting.

Wealthy investors don’t sell their crypto when they need cash. They take loans against it. No sale = no taxable event. Same strategy works for anyone with crypto holdings.

The following are included in your crypto cost basis: - Purchase price of the crypto - Exchange transaction fees - Blockchain gas fees Higher cost basis means lower capital gains when you sell. So make sure to account for fees!

@topcointrader Yes! We track and account for exchange fees and blockchain gas fees!

@CoinLedger Does your software track this ?

Tax Tip: Exchange fees from buying crypto get added to your cost basis. Bought $10,000 of BTC with a $50 fee? Your cost basis is $10,050. When you sell, your capital gain is calculated from $10,050 (not $10,000), which means lower taxes. Same applies when selling: fees reduce your proceeds.

@topcointrader In this case, cost basis will transfer over. You can use our API import for Robinhood!

@CoinLedger what if you only bought ltc on robinhood but then sold it on coinbase? You cant import the robinhood cvs?

The IRS's rules for tracking cost basis changed on January 1, 2025. Old rule (Universal): You could track cost basis across all wallets as one pool New rule (Per-Wallet): You must track cost basis separately for each wallet or exchange Example (assuming no transfers) - Buy 1 BTC for $80K on Coinbase - Buy 1 BTC for $78K on Kraken - Sell 1 BTC from Kraken for $90K Old way: $10K gain (using $80K basis from Coinbase) New way: $12K gain (only $78K Kraken basis counts)

The IRS is forcing all crypto investors to switch from Universal to Per-Wallet cost basis tracking for Tax Year 2025. What this means: You can no longer treat BTC on Coinbase and BTC on Kraken as one pool for tax purposes. Each wallet's cost basis must be tracked separately. If you sell 1 BTC from Kraken, only the cost basis of BTC purchased on Kraken counts. This can significantly change your capital gains calculations.

Crypto tax tip: You do not have to mark "Yes" to the digital asset question on Form 1040 if your crypto activity was limited to strictly purchasing crypto, holding crypto, or moving crypto around in your self-owned wallets. If that's all you did in 2025, check "No" and move on.

Trading one memecoin for another is taxable. If you swap PEPE for BONK and never touch USD, the IRS treats this as a disposal. You owe capital gains tax based on how PEPE's price changed since you acquired it. Swapping = selling in the eyes of the IRS.

Starting in 2026, every major US exchange will send you and the IRS a Form 1099-DA reporting your crypto gains and losses. If you don't report transactions that the IRS already knows about, you'll receive a CP2000 notice. This letter is considered one step away from a full audit.

The following events are not taxable: - Buying crypto with fiat (e.g. BTC for USD) - HODLing crypto - Transferring coins between your own wallets - Receiving crypto as a gift - Donating crypto to a 501(c)(3) Remember, there’s no tax for simply holding crypto.