- Noncustodial decentralized-exchange swaps do not generate a broker statement.
The IRS added six digital-asset categories to its 2025 Form 8949 instructions, changing how U.S. taxpayers report sales and exchanges on returns filed in 2026. The new boxes separate short-term and long-term transactions and account for whether a broker reported the asset’s basis.
Covered brokers began reporting gross proceeds for transactions from January 1, 2025.
The tax treatment of crypto-to-crypto swaps is not new. An exchange can result in a taxable gain or loss even if the taxpayer receives no dollars.
The IRS treats digital assets as property. The research does not establish when that treatment for swaps first took effect.
Six lettered boxes sort digital-asset sales by holding period and basis reporting
The 2025 instructions, dated January 20, 2026, assign three boxes to short-term transactions and three to long-term ones. Generally, an asset held for one year or less is short-term; an asset held for more than one year is long-term.
| Holding period | Basis reported to the IRS | Basis not reported to the IRS | No broker tax form received |
|---|---|---|---|
| Short-term, Part I | G | H | I |
| Long-term, Part II | J | K | L |
The box choice also reflects the reporting behind the sale. G or J applies when the basis was reported to the IRS; H or K applies when it was not. I or L covers a digital-asset sale for which no Form 1099-DA was received.
Use the relevant box for each category of transaction, separating categories when needed. The instructions also direct filers to use Schedule D for certain qualifying transactions instead of listing them individually on the capital-gains form.
Swapping tokens can realize a gain even when no dollars change hands
The IRS treats digital assets as property under general tax rules. Exchanging one token for another disposes of the token given up. The transaction can create a gain or loss regardless of whether cash changes hands.
To calculate the result, compare the disposed asset’s adjusted basis with the value received, taking applicable transaction costs into account. A taxable disposition does not automatically mean tax is owed: the calculation may show a loss or no gain.
The reporting-box change does not establish a new start date for taxing swaps. The IRS instructions describe the property treatment but do not state the original effective date of swap taxation.
Broker forms cover some sales, while reporting duties can extend beyond them
Covered brokers must report gross proceeds for transactions on or after January 1, 2025. Basis reporting applies to covered assets acquired after 2025 and held in custody, for transactions on or after January 1, 2026. The IRS furnished the first Form 1099-DA forms in 2026 for 2025 transactions.
For 2025 sales, broker basis reporting was voluntary. A blank basis field does not establish that the asset had no basis. Taxpayers should use their own purchase records to determine it and make any needed correction through the form’s adjustment process when basis was reported incorrectly.
The broker’s applicable-box code can help match a sale to the right category. If the broker did not report basis, the taxpayer must use personal records to determine the basis and holding period. The form is not a complete record of every transaction, and applicable sales and exchanges still must be reported without an information return.
Wallet and exchange records help identify reportable trades and transfers
Review and reconcile broker statements against wallet and exchange histories. Gather:
- Acquisition and disposal dates, plus the units involved.
- Adjusted basis, the value received, and transaction fees.
- Self-custody and decentralized-exchange activity that may not appear on a broker statement.
Spending digital assets can also be a disposition. Moving coins between wallets owned by the same person generally is not, although a fee paid in cryptocurrency can be a separate disposition. A swap on a noncustodial decentralized exchange does not produce a broker statement, but it can still require reporting in box I or L.
That answer does not by itself determine whether the person owes tax; the transactions and their gains or losses must be calculated.
Noncustodial exchange trades remain reportable without a broker statement
The DeFi broker rule was repealed under the Congressional Review Act. The repeal summary identifies April 10, 2025 as the signing date and July 11, 2025 as the date the rule was removed from regulations. Noncustodial exchange trades therefore do not generate a Form 1099-DA, but the absence of that form does not remove the reporting obligation for taxable swaps.
Use the instructions and Schedule D to reconcile applicable transactions, and retain records supporting basis, proceeds and fees. This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or CPA about your specific situation.
