2026 IRS Digital Asset Rules for Dallas, TX Taxpayers

How Cryptocurrency Transactions Are Taxed in 2026

The IRS is cracking down on cryptocurrency and digital asset reporting. Stay ahead of these important changes.

New Form 1099-DA

Starting in 2026, cryptocurrency exchanges and brokers must issue Form 1099-DA for:

• – All crypto sales and exchanges
• – Transactions exceeding $600
• – NFT sales

Enhanced Reporting Requirements

For Taxpayers:

• – Report all cryptocurrency transactions, including:

– Buying and selling crypto

– Converting one crypto to another

– Using crypto to purchase goods or services

– Receiving crypto as payment

For Businesses:

• – Businesses receiving $10,000+ in crypto must file Form 8300
• – Report customer information to the IRS

Calculating Gains and Losses

• – Cost basis methods: FIFO, LIFO, or specific identification
• – Keep detailed records of:

– Purchase dates and prices

– Sale dates and prices

– Wallet addresses and transaction hashes

Common Mistakes to Avoid

• 1. Not reporting small transactions
• 2. Forgetting about crypto-to-crypto swaps
• 3. Missing staking or mining income
• 4. Ignoring airdrops and forks

Planning Strategies

• – Tax-loss harvesting: Offset gains with losses
• – Long-term holding: Lower rates for assets held over 1 year
• – Charitable donations: Donate appreciated crypto for deductions

DWC Tax Pro specializes in cryptocurrency tax reporting. Contact us for expert guidance.