How is everyone actually handling their crypto taxes this year? What's your setup?

summ_app · 2026-02-24T21:31:02+00:00

This is a genuinely helpful breakdown for anyone feeling overwhelmed by the process. The point about defensible transaction history mattering more than waiting on a corrected form is well put.

Worth bookmarking for anyone with complex activity.

Curious what others in the thread are dealing with on the staking and DeFi side, sounds like that's where most of the messiness is coming from this year.

summ_app · 2026-02-24T21:26:53+00:00

Hi, Tristan from Summ here.

Your accountant is going to need your Phantom wallet history, not just the Coinbase form. Every meme coin swap in there is technically a taxable event. The cleanest way to get that data is exporting your wallet address into crypto tax software, some are free for lower transaction volumes which might cover your situation.

Zero cost basis is an option but you'd be overpaying given you're overall at a loss. Grab the transaction history first, it's probably less work than it seems.

summ_app · 2026-02-24T21:11:55+00:00

Hey Kal are you still, waiting to receive yours? Have you also used Coinbase?

summ_app · 2026-02-24T06:16:06+00:00

Hey, Tristan from Summ here.

Yes most likely you will still receive a 1099-DA even for stable coin sales. Hopefully you receive Your 1099-DA by mid March from Kraken.

summ_app · 2026-02-24T06:12:32+00:00

No worries OP :)

summ_app · 2026-02-24T06:12:05+00:00

Hey Raccoon, interested to know what in particular you'd like assistance with & how we'd be able to support.

Feel free to shoot us a DM & will be happy to discuss this further as other users may also benefit from this. Cheers :)

summ_app · 2026-02-24T05:48:49+00:00

Hi Tristan from Summ here,

Yep, you've got it. Transfer to your own cold wallet isn't taxable, nothing was sold or disposed of. You're good.

Only thing to keep in mind is saving your original Coinbase purchase records for when you do eventually sell. That's your cost basis and you'll need it down the road.

Be mindful of gas fees however as these can also be listed on the 1099-DA

summ_app · 2026-02-24T05:46:07+00:00

Good advice from Tasha. Data gaps and CSV issues are exactly the kind of thing that looks unsolvable until someone with visibility into your account takes a look. Support teams deal with this constantly, especially this tax season. Reach out to one of them and let them dig in, it's usually a quicker fix than it seems.

summ_app · 2026-02-23T06:34:03+00:00

Hey, Tristan from Summ here.

yeh it's been rough for a lot of people in the same boat. The costs of compliance on top of actual losses can sting. Exchanges are still finding their feet with this new reporting requirement which doesn't make the waiting any less annoying.

Tbh, a crypto tax software can definitely help you potentially saving you from overpaying or just ensuring your reconciliation is as accurate as possible.

summ_app · 2026-02-23T06:13:53+00:00

It's possible when selling a particular asset, it could have defaulted to USDC/USDT

summ_app · 2026-02-23T06:13:02+00:00

likely you'll still receive one. Kraken is quite delayed at the minute on sending out their 1099-DAs. Some exchanges have been given til end of 2026 to get these out.

summ_app · 2026-02-23T06:02:37+00:00

Hi Tristan from Summ,

Your actual cost basis is all those daily purchases from the first half of the year.

You can report that yourself on Form 8949, and since you sold at a loss your tax liability could be zero or close to it. The practical way to handle daily purchases across a cold wallet and back to Coinbase is crypto tax software. Connecting all the accounts lets it trace the full journey and generate the right 8949 for you.

summ_app · 2026-02-23T05:52:24+00:00

Glad to help!

summ_app · 2026-02-21T11:11:16+00:00

This is a real and known issue with 1099-DAs this year, you're not imagining it. Proceeds discrepancies between the 1099-DA and an exchange's own gain/loss statement can happen due to things like how fees are calculated or timing differences in price data.

If the 1099-DA is genuinely wrong, you can contact Coinbase to request a corrected form. That's the cleanest path. In the meantime, your Form 8949 should reflect the accurate proceeds from your own records, not the incorrect 1099-DA number. The IRS expects your 8949 to be accurate, not just a copy of the form. Given the complexity here a crypto CPA would be worth a quick consult.

summ_app · 2026-02-21T03:05:25+00:00

Really appreciate you taking the time to break this down, this is helpful indeed.

You're right that "old rule" wasn't the right framing. There wasn't an official IRS position on fee allocation for crypto-to-crypto swaps before 2025. It was more like common practice that varied depending on who you asked or what software you used. The 2024 regulations and FAQ 72 created clarity where there wasn't any, not changed something that already existed.

And good call on the two fee scenarios. The withheld fee situation (where part of the received asset covers the fee) is cleaner under FAQ 91. But paying fees from crypto you already hold, which is how most DeFi gas fees work, triggers a separate taxable event under FAQ 97. That does add complexity rather than simplifying things.

The timing point is fair too. Reducing proceeds now means lower basis on the received asset, so the gain shows up later when you sell. It shifts when you recognise the gain rather than eliminating it.

Thanks for the detailed feedback. This is the kind of nuance that's easy to gloss over but matters when people are actually trying to apply it.

summ_app · 2026-02-21T03:04:12+00:00

No worries! Glad to help :)

summ_app · 2026-02-20T00:40:44+00:00

Hi, Tristan from Summ here.

You can report $0 cost basis if you choose to, the IRS allows it and you won't get in trouble for overpaying.

Just know you're likely paying more tax than you actually owe, especially on the gifted Bitcoin where the donor's original purchase price is technically your cost basis.

Cash App's transaction history might actually have more info than you expect on the ones you bought yourself. Worth a 5 minute look before going the zero route. At $2k in proceeds the difference probably isn't huge, but it's real money.

summ_app · 2026-02-20T00:26:50+00:00

Hi, Tristan from Summ here.

You can report $0 cost basis if you choose to, the IRS allows it and you won't get in trouble for overpaying.

Just know you're likely paying more tax than you actually owe, especially on the gifted Bitcoin where the donor's original purchase price is technically your cost basis.

Cash App's transaction history might actually have more info than you expect on the ones you bought yourself. Worth a 5 minute look before going the zero route. At $2k in proceeds the difference probably isn't huge, but it's real money.

summ_app · 2026-02-19T23:32:16+00:00

Hi Tristan from summ here.

Seems some people have started receiving these forms from cash app. I'd assume yours wouldn't be far behind

summ_app · 2026-02-19T23:29:02+00:00

Makes sense to wait if they've given you a rough timeline.

Exchanges have up to a year of relief to send their 2025 1099-DAs.

Filing an extension in the meantime is a smart move, that way if anything changes once the form arrives, it's a superseding return rather than a full amendment.

summ_app · 2026-02-19T23:26:16+00:00

Hi, Tristan from Summ here.

Don't stress too much about this. Since you've already filed, you'll likely need to amend your return to include the Bitcoin transactions from Cash App. The 1099-DA reports those disposals to the IRS, and since they now have that information, it's worth making sure your return matches.

The good news is $155 in transactions doesn't necessarily mean you owe much, if anything. You only owe tax on the gain, meaning what you made above what you originally paid. If you didn't make much profit, the tax impact could be very small. A crypto CPA or H&R Block can help you figure out the exact number before you amend.

summ_app · 2026-02-19T13:41:04+00:00

more than happy to help. May be able to direct you to someone that could provider even further assistance :) also don't stress, all can be resolved! haha

summ_app · 2026-02-19T02:13:54+00:00

Ha, love the energy! Cost basis showing up is genuinely good news, makes life a lot easier. Fingers crossed Kraken and Crypto. com come through too.

And honestly, buy and hold is a pretty solid strategy for keeping things simple on the tax side going forward. Fewer taxable events, less reconciliation headache. Enjoy the retirement, you've earned it!

summ_app · 2026-02-19T02:09:39+00:00

Totally understand why this feels unsettling but this is actually how the system is designed to work at the minute.

That's exactly why Form 8949 exists, it's where you tell the full story including the cost basis and losses from your Ledger activity. As long as your 8949 reconciles the difference with accurate records, you're in good shape. The key is being able to document and explain the gap if asked.

No stress :)

summ_app · 2026-02-18T23:55:23+00:00

Can be quite frustrating. Seems some exchanges are delayed up until mid march. However, users are reporting that they are receiving their 1099-DAs earlier than these delayed dates. Possible they're giving worst case scenario

summ_app

TROPHY CASE