Tax Clarity: The New U.S. Crypto Tax Era and Form 1099-DA ๐๐บ๐ธ
The IRS has officially activated new reporting requirements for 2025, mandating that brokers report gross proceeds from digital asset sales using the new Form 1099-DA. ๐ฆ๐
By 2026, this framework will expand to include "cost basis" reporting, eliminating tax ambiguity and treating crypto with the same structural rigor as traditional stocks. โ๏ธ๐
The bipartisan "Digital Asset PARITY Act," introduced in late 2025, proposes tax exemptions for small daily purchases under $200 and more favorable rules for staking rewards. โโ๏ธ
While the "wash sale" loophole is closingโrequiring a 30-day wait to claim lossesโthese rules provide the "clean" data institutional investors need to enter the market. ๐ช๐ก๏ธ
This shift toward automated tax reporting is a massive leap for mainstream legitimacy, reducing the manual burden on individual taxpayers while increasing federal oversight. ๐๏ธ๐
As the U.S. modernizes its tax code for the Web3 age, "tax-loss harvesting" and long-term holding strategies are becoming essential tools for savvy investors. ๐๐ฐ
#CryptoTax #IRS #1099DA #DigitalAssetRegulation
