Taxpayers receive Form 1099-DA when they sell, exchange, or otherwise dispose of a digital asset. In Drake Tax, use the 99DA screen to enter details reported on Form 1099-DA. In View/Print mode, review Form 8949, page 2 and Schedule D.

Screen 99DA

Generally, the data entry boxes correspond to the form that was issued. See notes below as applicable.

• Applicable Part I/Part II check box on Form 8949

  • 4 - Basis reported to the IRS (check box G\J) (DEFAULT)

  • 5 - Basis not reported to the IRS (check box H\K)

  • 6 - Transaction not reported on Form 1099-B (check box I/L)

• 1a Code for digital asset - Digital Token Identifier Foundation (DTIF) code

• 1b Name of digital asset

• 1c Number of units

• 1d Date acquired

• 1e Date sold or disposed

• 1f Proceeds

• 1g Cost or other basis

• AMT cost basis

• 1h Accrued market discount

• Use worksheet for accrued market adjustment checkbox

• 1i Wash sale loss disallowed

• 2 Basis reported to IRS

• 3a Reported to 1RS:

  • Gross proceeds

  • Net proceeds

• 3b Proceeds from QOF

• 4 Federal tax withheld

• 5 Loss based on amount in box 1f not allowed

• 6 Type of gain or loss (override)

• 7 1f is only cash

• 8 Broker relied on customer-provided info

• 9 Noncovered security

• 11a

  • Qualifying stablecoins

  • Specified NFTs

• 11b If 11a checked, number of transactions....

• 11c For aggregate reporting

• 12a Number of units transferred in

• 12b Date transferred in

• Adjustments

• State Information

  • 14 State Name

  • 15 State ID Number

  • 16 State tax withheld

  • State Use Only (entries vary by state)

    • Can use the LLC# box to tie it to a SMLLC for state purposes

Summarize Entries

There are two exceptions to the requirement to report individual transactions from Form 1099-DA on the return. The data entry varies depending on whether the basis was reported to the IRS and whether adjustments are needed. See below for details on each exception type. The Form 8949 Draft instructions provide more information.

Basis Not Reported or Adjustments Needed

To report the totals for transactions where basis was not reported to the IRS, or if there are adjustments needed, follow the steps below.

1. Complete the following fields on screen 99DA.

   • Applicable Part I/Part II check box on Form 8949

   • 1b Name of digital asset - Enter See 1099DA Attached (or a similar description)

   • 1f Proceeds - Total only

   • 1g Cost or other basis - Total only

   • 6 Type of gain or loss

   • Adjustments, make a selection, if applicable.

2. On the PDF screen, enter the Reference Source, Description, and File Name.

3. In View/Print Mode, click the Attach PDF button on the toolbar to open the EF PDF Attachments dialog box.

4. Select the 1099DA line and click Browse.

5. Navigate to the location where the document is saved, select the document, and click Open.

6. Verify that the upload was successful and click Exit.

7. Recalculate the return to clear EF Message 5952.

Basis Reported and No Adjustments

If basis was reported to the IRS and there are no adjustments needed, you can enter the totals on lines 1a (short term) and 8a (long term) of screen D2.Then provide the required transaction information to the IRS by either mailing Form 8453 with copies of the brokerage statements within three days of the return being accepted, or attach the required documents as a PDF attachment to the e-filed return. See the following articles for more detailed information: 

• Drake Tax - 8453 - Paper Document Indicator

• Drake Tax - PDF Attachments - Attachments for e-File

Related Links

Drake Tax - 8949 - Import Transactions, PDI Indicator or PDF Attachment

Form 1099-DA Instructions