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1099-DA After Moving Crypto Between Exchanges: Basis
This site provides general information, not tax, legal or financial advice. Consult a qualified tax professional. Last verified against IRS pages: October 17, 2026. Examples use made-up numbers for illustration only.
Short answer: Digital assets you transfer into a broker are generally "noncovered," so the broker may not report your original basis. Your basis does not disappear. It follows the asset, and you may need to document it yourself.
Why transfers-in become noncovered
The IRS instructions for Form 1099-DA (2026) say a digital asset is a covered security only if it was acquired after 2025 in an account where the broker provided custodial services and was held in that account until sold. A digital asset transferred in to the broker is a noncovered security, as are assets acquired before 2026 or outside the broker's custody.
The boxes to look at
| Box | What it says |
|---|---|
| 9 | Check if the digital asset is a noncovered security. If checked, the broker need not complete 1d, 1g, 1h, 1i, or 6. |
| 12a | Number of units sold that had been transferred in. |
| 12b | Transfer-in date (blank if transferred in on a variety of dates). |
| 8 | Broker relied on customer-provided acquisition information to identify which units were sold. |
| 2 | Check if basis was reported to the IRS. |
| 1g | Cost or other basis (blank possible when box 9 is checked). |
Default lot order
If you did not give the broker an adequate and timely identification of the units to sell, the broker generally must first report the sale of the earliest units purchased by the customer. If the broker does not take customer-provided acquisition information into account, it treats units transferred into your account as acquired at the date and time of the transfer. Brokers may use customer-provided acquisition information only for lot selection, not for reporting basis or acquisition dates.
What this can mean (illustration, not a rule about your case): the date in box 1d or 12b may reflect when units arrived at that broker, not when you originally bought them. For holding period (short vs long term) and basis, your own records of the original acquisition matter.
How to rebuild basis across wallets
- List every wallet and exchange you used, with date ranges.
- Match transfers: the withdrawal on one side and the deposit on the other (amount, date, network fee).
- Trace to the original purchase for each lot: price paid, fees, date.
- Record transfer fees appropriately; ask a professional how a given fee should be treated.
- Keep the chain (exports, screenshots, statements) together per lot.
- Compare your result with box 1d/1g/12a/12b of each 1099-DA.
- Enter your correct basis on Form 8949: boxes H or K for noncovered sales where basis was not reported (see cost basis missing); if the 1099-DA shows basis you think is wrong, see wrong cost basis.
Example (made-up numbers)
You bought 1 unit of "ABC" at Exchange A on 01/15/2025 for $1,000 (including fee) and moved it to Exchange B on 03/02/2026. At Exchange B you sold it on 05/10/2026 for $1,600 (box 1f). The 1099-DA from B shows box 9 checked, box 12a 1.0, box 12b 03/02/2026, box 1g blank.
- Your own records show acquisition 01/15/2025 and basis $1,000.
- Held more than one year (01/16/2025 to 05/10/2026), so long term, Form 8949 box K; column (e) $1,000; gain $600.
- If you relied only on the transfer date, you would get the wrong holding period and basis. Illustration only; the exact reporting depends on your facts.
FAQ
Is a transfer between my own wallets taxable? The pages we read cover broker reporting, not the taxation of wallet-to-wallet transfers. Talk to a tax professional.
What's box 8 for? It tells you the broker used acquisition information you provided to pick which lots were sold.
Can I choose which units I sell? The instructions say the broker follows your adequate and timely identification; otherwise earliest units first. Ask your broker how to make an identification.
Does the broker send a 1099-DA for the transfer itself? The pages we read do not say; transfers without a sale are generally not "sales," but verify with a professional.
What we could not verify
- Whether wallet-to-wallet transfers are reportable by any broker in a given case.
- How each broker lets customers identify lots or submit acquisition information.
- The current treatment of transfer fees in basis (see the IRS pages on digital assets).
Sources
- IRS, Understanding your Form 1099-DA — https://www.irs.gov/businesses/understanding-your-form-1099-da (page updated June 28, 2026; read October 17, 2026)
- IRS, Instructions for Form 1099-DA (2026) — https://www.irs.gov/instructions/i1099da (read October 17, 2026)
- IRS, Instructions for Form 8949 (2025 revision) — https://www.irs.gov/instructions/i8949 (read October 17, 2026)
Not tax advice. Examples use made-up figures. Nothing here has been reviewed by a tax professional. We may earn commissions from affiliate links where marked; see the disclosure.