1099-DA vs 1099-B: Key Differences Between Crypto & Stock Forms

Table of Contents

1. Overview: Two Forms, Same Purpose
2. Side-by-Side Comparison
3. Key Differences That Matter for Your Taxes
4. Cost Basis Tracking: The Critical Distinction
5. Reporting Requirements Comparison
6. When You Receive Both Forms
7. How to Report Each on Your Tax Return
8. FAQ: 1099-DA vs 1099-B Questions

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Overview: Two Forms, Same Purpose

Both Form 1099-DA and Form 1099-B serve the same fundamental purpose: reporting proceeds from the sale of investment assets. The key difference is the asset type.

Form 1099-B (Broker Proceeds from Stock Sales)

What it reports:

• Stocks, bonds, mutual funds, options
• Traditional securities traded through brokerages

History:

• Established in 1960s
• Mature reporting system with decades of refinement
• Brokers have comprehensive cost basis tracking

When you receive it:

• Annually by February 15 for prior year sales
• From any brokerage where you sold securities

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Form 1099-DA (Digital Asset Proceeds from Broker Transactions)

What it reports:

• Cryptocurrency (Bitcoin, Ethereum, etc.)
• NFTs and other digital assets
• Crypto traded through exchanges

History:

• New for 2025 tax year (forms issued January 2026)
• First year of implementation
• Cost basis tracking still developing

When you receive it:

• Annually by January 31 for prior year sales
• From any crypto exchange where you sold $600+ in crypto

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Side-by-Side Comparison

Feature	Form 1099-B (Stocks)	Form 1099-DA (Crypto)
Assets Covered	Stocks, bonds, options, mutual funds	Cryptocurrency, NFTs, digital assets
Effective Date	1960s (mature system)	2025 (new system)
Form Deadline	February 15	January 31
Reporting Threshold	All sales (no minimum)	$600+ gross proceeds
Cost Basis Tracking	Comprehensive (since 2011)	Limited (new, incomplete)
Transferred Assets	Brokers communicate basis	No basis transfer system
IRS Form Used	Form 8949 + Schedule D	Form 8949 + Schedule D (same)
Wash Sale Rules	Strictly enforced	Currently not enforced (may change)
Holding Period	Clearly defined	Clearly defined (same rules)
Short-term/Long-term	< 1 year / > 1 year	< 1 year / > 1 year (same)
Multiple Forms	One per brokerage	One per exchange
Cost Basis Accuracy	Generally accurate (95%+)	Often incomplete or wrong

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Key Differences That Matter for Your Taxes

Difference #1: Cost Basis Tracking Maturity

Form 1099-B (Stocks):

• Comprehensive tracking since 2011 tax law change
• Brokers track cost basis for all securities purchased after 2011
• When you transfer stocks between brokerages, cost basis travels with them
• Result: Box 1e (cost basis) is usually accurate

Form 1099-DA (Crypto):

• New system starting 2025
• Exchanges only track cost basis for crypto bought on their platform
• No system for transferring cost basis between exchanges/wallets
• If you transferred crypto in from elsewhere, basis shows $0
• Result: Box 1b (cost basis) is often wrong or blank

Tax Impact:

• Stocks: You can usually trust your 1099-B cost basis
• Crypto: You must verify and often correct your 1099-DA cost basis

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Difference #2: Asset Transfer Tracking

Form 1099-B (Stocks): When you transfer stocks from Fidelity to Charles Schwab:

• Fidelity reports transfer to IRS
• Schwab receives cost basis information
• Your 1099-B from Schwab includes accurate basis
• Seamless system established by DTCC (Depository Trust & Clearing Corporation)

Form 1099-DA (Crypto): When you transfer BTC from Coinbase to Kraken:

• Coinbase doesn't report the transfer
• Kraken has no idea what you paid originally
• Your 1099-DA from Kraken shows $0 cost basis
• You must provide correct basis on Form 8949

Tax Impact:

• Stocks: Transfers are transparent
• Crypto: Transfers create reporting gaps you must fill

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Difference #3: Wash Sale Rules

Form 1099-B (Stocks):

• Wash sale rules strictly apply
• If you sell at a loss and rebuy within 30 days, loss is disallowed
• Brokers automatically calculate and report wash sales on 1099-B
• Adjustment shown in Box 1g

Form 1099-DA (Crypto):

• Wash sale rules currently DON'T apply to crypto
• You can sell BTC at a loss and immediately rebuy
• Harvest losses without waiting 30 days
• However: This may change in future legislation

Tax Impact:

• Stocks: Limited tax-loss harvesting due to wash sale rules
• Crypto: More flexible tax-loss harvesting (for now)

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Difference #4: Reporting Threshold

Form 1099-B (Stocks):

• No minimum threshold
• You receive 1099-B for ANY stock sale, even $1
• Comprehensive reporting of all brokerage activity

Form 1099-DA (Crypto):

• $600 threshold for gross proceeds
• Sales under $600 = no 1099-DA issued
• But you still must report all crypto sales on your return

Tax Impact:

• Stocks: All activity automatically reported
• Crypto: Small traders may not receive forms but still owe taxes

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Difference #5: Form Delivery Deadline

Form 1099-B (Stocks):

• Deadline: February 15
• Comes after 1099-DA and W-2
• More time for brokers to finalize information

Form 1099-DA (Crypto):

• Deadline: January 31
• Same deadline as W-2
• Comes before 1099-B

Tax Impact:

• Stocks: Longer wait for forms
• Crypto: Earlier forms mean earlier tax prep possible

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Cost Basis Tracking: The Critical Distinction

This is the most important practical difference between the two forms.

How Stock Cost Basis Works (1099-B)

Scenario:

1. You buy 100 shares of Apple at $150/share on Fidelity = $15,000
2. You transfer 100 shares to Charles Schwab
3. You sell 100 shares on Schwab for $200/share = $20,000

Schwab's 1099-B will show:

• Box 1d (Proceeds): $20,000
• Box 1e (Cost Basis): $15,000 ✅ (accurate—basis transferred from Fidelity)
• Box 1g (Gain): $5,000
• Result: Accurate reporting, no user action needed

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How Crypto Cost Basis Works (1099-DA)

Scenario:

1. You buy 1 BTC at $40,000 on Coinbase
2. You transfer 1 BTC to Kraken
3. You sell 1 BTC on Kraken for $60,000

Kraken's 1099-DA will show:

• Box 1a (Proceeds): $60,000
• Box 1b (Cost Basis): $0 ❌ (wrong—Kraken doesn't know about Coinbase purchase)
• Box 1c (Gain): $60,000 (should be $20,000)
• Result: Grossly inaccurate, requires correction on Form 8949

Your Responsibility: Report correct $40,000 cost basis on Form 8949 with adjustment code "B" and attach explanation.

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Why This Happens

Stock System:

• 40+ years of infrastructure development
• Centralized clearing system (DTCC)
• Legal requirement for brokers to communicate basis
• Account transfer instructions include cost basis

Crypto System:

• Brand new (2025)
• Decentralized by nature
• No equivalent of DTCC for crypto
• Blockchain transfers don't include cost basis metadata
• Each exchange operates independently

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Reporting Requirements Comparison

What Brokers Must Report

Form 1099-B (Stock Brokers): ✅ All sales (no threshold)
✅ Cost basis (for covered securities)
✅ Short-term vs long-term designation
✅ Wash sale adjustments
✅ Acquisition date
✅ Sale date

Form 1099-DA (Crypto Exchanges): ✅ Sales over $600 gross proceeds
⚠️ Cost basis (if available—often not)
✅ Sale date
⚠️ Acquisition date (if known—often not for transferred assets)
❌ Wash sale adjustments (not applicable)
⚠️ Short-term vs long-term (must be calculated by taxpayer if dates missing)

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What YOU Must Report

For Both Forms:

• You must report the information on Form 8949 (capital gains/losses)
• Then summarize on Schedule D
• Both use identical reporting process
• Both count toward capital gains tax calculation

Key Difference:

• 1099-B: Usually report "as is"
• 1099-DA: Often requires corrections with adjustment codes

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When You Receive Both Forms

Many investors trade both stocks and crypto, receiving both forms. Here's how to handle it.

Scenario: Stock and Crypto Investor

Your 2025 trading activity:

Stocks (via Fidelity):

• Sold $50,000 in stocks
• Cost basis: $42,000
• Gain: $8,000
• Receive: Form 1099-B

Crypto (via Coinbase):

• Sold $30,000 in crypto
• Cost basis: $25,000
• Gain: $5,000
• Receive: Form 1099-DA

How to Report

Step 1: Separate Forms 8949

Form 8949 - Part I (Short-term):

• Section A: Transactions reported on 1099-B
  • List all stock sales with short-term holding
• Section B: Transactions reported on 1099-DA
  • List all crypto sales with short-term holding

Form 8949 - Part II (Long-term):

• Section A: Transactions reported on 1099-B
  • List all stock sales with long-term holding
• Section B: Transactions reported on 1099-DA
  • List all crypto sales with long-term holding

Step 2: Summarize on Schedule D

All gains (stocks + crypto) flow to one Schedule D:

• Line 1: Short-term gains from Form 8949 Part I
• Line 8: Long-term gains from Form 8949 Part II
• Combined tax liability calculated on total

Result: You pay tax on $13,000 total gain ($8,000 stocks + $5,000 crypto)

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How to Report Each on Your Tax Return

Reporting Process is IDENTICAL

Despite the differences in the forms, you report both the same way:

Step 1: List transactions on Form 8949

• Separate short-term (≤1 year) from long-term (>1 year)
• Show proceeds, cost basis, gain/loss

Step 2: Total each section on Form 8949

Step 3: Transfer totals to Schedule D

• Schedule D summarizes all capital gains and losses
• Calculates your final capital gains tax

Step 4: Transfer final number to Form 1040

• Line 7: Capital gains or (losses)

The Forms Flow Together

1099-B (stocks) ┐
                ├→ Form 8949 → Schedule D → Form 1040 (Line 7)
1099-DA (crypto)┘

Key Point: Both forms feed into the same IRS reporting process. Stocks and crypto are taxed identically as capital gains.

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FAQ: 1099-DA vs 1099-B Questions

1. Is crypto taxed differently than stocks?

No. Both are taxed as capital gains. Same rates, same holding periods (short-term vs long-term), same rules. The forms are different but tax treatment is identical.

2. Can I offset crypto losses against stock gains?

Yes. Capital losses from any source (stocks, crypto, real estate) can offset capital gains from any other source. Report all on Schedule D and net them together.

Example:

• Stock gains: $10,000
• Crypto losses: $6,000
• Net gain: $4,000 (pay tax on $4,000)

3. Do I need separate tax software for 1099-B and 1099-DA?

No. Most tax software (TurboTax, H&R Block, etc.) handles both. Crypto-specific software like CryptoForms also imports 1099-B for unified reporting.

4. Which form is more likely to have errors?

1099-DA (crypto) is far more likely to have errors, especially cost basis issues. 1099-B is a mature system with 40+ years of refinement.

5. Can I receive both forms from the same company?

Yes. Some platforms (like Robinhood, Webull) offer both stock and crypto trading. You'll receive:

• One 1099-B for stock sales
• One 1099-DA for crypto sales
• From the same broker

6. Do wash sale rules apply to crypto?

Currently no. Wash sale rules apply to stocks (reported on 1099-B) but not to crypto (as of 2025). This may change in future tax legislation.

7. Is the tax rate different for stocks vs crypto?

No. Identical tax rates:

• Short-term (≤1 year): 10-37% (ordinary income rates)
• Long-term (>1 year): 0%, 15%, or 20% (capital gains rates)

Same for both stocks and crypto.

8. Which form do I need to correct more often?

1099-DA requires corrections far more often due to:

• Missing or wrong cost basis (transferred assets)
• Missing acquisition dates
• Internal transfers mistakenly reported as sales

1099-B rarely needs corrections (unless brokerage made an error).

9. Can I use HIFO accounting for both stocks and crypto?

Stocks: Only if your broker supports it (most use FIFO default)
Crypto: Yes, if exchange allows or you calculate yourself

Both must use consistent accounting method (FIFO, LIFO, or HIFO) once chosen.

10. If I trade both, do I pay more tax?

No. Tax is calculated on total net capital gains regardless of asset type. Trading both stocks and crypto doesn't increase your tax rate—just the complexity of reporting.

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Summary: Key Takeaways

Similarities:

• Both report asset sales to IRS
• Both use Form 8949 and Schedule D for reporting
• Both taxed as capital gains (identical rates)
• Both distinguish short-term vs long-term

Differences:

• 1099-B: Mature system, accurate cost basis, all sales reported
• 1099-DA: New system, often missing cost basis, $600 threshold

Best Practice:

• Trust 1099-B cost basis (usually accurate)
• Verify 1099-DA cost basis (often wrong)
• Report both on same Form 8949/Schedule D
• Keep records for both asset types for 7 years

Bottom Line: While the forms differ, stocks and crypto are taxed identically. The challenge with 1099-DA is ensuring accurate cost basis reporting, especially for transferred assets.

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About the Author

CryptoForms Research Team
This comparison guide is based on IRS tax form specifications, analysis of brokerage and exchange reporting systems, and consultations with CPAs specializing in both traditional securities and digital assets. Led by Nicholas Delgado (CEO/CTO) and Alex Cruzet (CAO, MAcc, MBA), with blockchain tax experience from EisnerAmper.

Last Reviewed: November 26, 2025
Next Review: February 2026 (after both form issuance seasons)

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Related Articles

1099-DA Resources:

• Form 1099-DA Complete Guide - Everything about the crypto tax form
• 1099-DA Requirements for 2025 - Who gets forms, deadlines
• How to Read Your 1099-DA - Line-by-line breakdown
• Missing 1099-DA? What to Do - Troubleshooting guide

Tax Fundamentals:

• Complete Crypto Tax Guide 2026 - Crypto tax basics
• How to Report Crypto on Your Taxes - Filing instructions
• Crypto Capital Gains Tax - Understanding rates

Exchange Guides:

• Coinbase Tax Guide - Coinbase reporting
• Best Crypto Tax Software 2026 - Compare tools

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Disclaimer: This article provides general tax information and should not be considered professional tax advice. Tax rules are complex and individual circumstances vary. Consult a qualified tax professional or CPA for advice specific to your situation. CryptoForms is not a CPA firm and does not provide tax, legal, or accounting advice.

Publication Information:
Published: November 26, 2025
Updated: November 26, 2025
Word Count: 1,872 words
Read Time: 7 minutes

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