Topic · Taxes and estates
Form 8949 for crypto: what it is
- Quick fact 1
Form 8949 is used to report sales and other dispositions of capital assets.
Source: IRS: About Form 8949, Sales and Other Dispositions of Capital Assets
- Quick fact 2
The IRS treats digital assets as property, so sales and exchanges can be capital transactions.
Source: IRS: Digital assets
- Quick fact 3
Brokers report digital asset sales on Form 1099-DA.
Source: IRS: About Form 1099-DA, Digital Asset Proceeds From Broker Transactions
The short lesson
If you sold, swapped or spent crypto during the year, the IRS generally wants each of those disposals listed. The form for that is Form 8949, “Sales and Other Dispositions of Capital Assets.”
What goes on it, line by line
- A description (for example, “0.5 units of Token A”)
- Date acquired
- Date sold or disposed of
- Proceeds
- Cost basis
- Gain or loss
Short-term (held one year or less) and long-term (more than one year) transactions go in separate parts. Totals carry to Schedule D.
Where the numbers come from
- Your broker’s Form 1099-DA, when you get one.
- Your own records for everything else, especially cost basis and transfers between platforms.
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Related terms
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More in Taxes and estates
Common questions
Do I list every crypto trade?
Generally each disposal, though some summaries are allowed in certain cases. Check the form instructions.
What is short-term vs long-term?
Held one year or less is short-term; more than one year is long-term.
Is buying crypto with dollars reported on 8949?
Buying alone is not a disposal. Selling, swapping or spending is.
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Reviewed and sources
Written and reviewed by Joshua Baskin, founder. Last reviewed . How we check facts · Report an error
Education only. Not investment, tax or legal advice. We do not pick coins.