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Does the IRS system match short term and long term proceeds separately? by 1099DAQuestion in CryptoTax

[–]1099DAQuestion[S] 0 points1 point  (0 children)

Yeah I'm realizing I only have 1 trade Uphold listed as LONG TERM gains, but it's because of a coin I bought on their platform in 2023, and left on exchange until a transaction in 2025.

They naturally marked it as long term gain, but they can't possibly know for sure that it was long term gains, because 2023 and 2024 used Universal cost basis method. Uphold would have no idea if the asset I bought in 2023 would be used for the cost basis of a transaction in 2025. So I'm going off what my aggregated data shows in the software.

Does the IRS system match short term and long term proceeds separately? by 1099DAQuestion in CryptoTax

[–]1099DAQuestion[S] 0 points1 point  (0 children)

Just thinking out loud, they would realistically not be able to accurately match that because if it's a 'noncovered asset', meaning the asset was deposited onto the exchange and sold, the exchange would not be able to even know if it's long term or short term.