Crypto In The News

IRS New Rules for Cryptocurrency Brokers:

1099-DA, Digital Asset Proceeds from Broker Transactions, was set to be a requirement for the 2025 tax year. Due to the lack of infrastructure for determining cost basis of crypto assets held in centralized platforms, the IRS delayed new crypto tax reporting requirements until January 1, 2026, giving digital asset brokers an additional year to prepare for the regulatory changes. IRS Notice 2024-57.

GAAP Reporting

As of fiscal years beginning December 15, 2024, GAAP guidelines require the reporting of interim gains and losses due to changes in fair market value of held cryptocurrencies. This treats cryptocurrency more like foreign currency rather than an intangible asset. ASC 320-10-35-36.

Complications for corporate accounting will be the policies for recognizing the cost basis. For example, entities will need to determine if they are selling First In - First Out (FIFO) or Last In - First Out (LIFO).