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

Related Links

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

Form 1099-DA Instructions