Do U.S. Companies Still Have to File a BOI Report After FinCEN’s 2026 Final Rule?
Swapping Bitcoin for Ethereum or exchanging one cryptocurrency for another may create a taxable gain or loss, even when no U.S. dollars change hands. New IRS reporting requirements introduced in 2025 and expanded in 2026 are giving federal tax authorities greater visibility into these transactions. Understanding how cryptocurrency exchanges are taxed, what brokers report, and how to calculate gains and losses is increasingly important for investors navigating their digital asset tax obligations.
Yes. The IRS treats cryptocurrency as property, meaning exchanging one digital asset for another generally constitutes a taxable disposition of the first asset and an acquisition of the second. For example, swapping Bitcoin purchased for $5,000 for Ethereum worth $8,000 creates a $3,000 capital gain, assuming no transaction fees or adjustments. The Ethereum generally receives a new $8,000 tax basis.
Gains on assets held for one year or less are generally taxed at ordinary income rates, while longer holding periods may qualify for preferential capital gains rates. These rules apply even when investors never convert cryptocurrency into cash.
Introduced under IRS regulations finalized in July 2024, Form 1099-DA standardizes reporting of certain cryptocurrency and non-fungible token transactions (NFTs). Beginning January 1, 2025, covered U.S. custodial brokers, including centralized exchanges and certain payment processors, became responsible for reporting gross proceeds from reportable sales and exchanges.
The first Forms 1099-DA were furnished to taxpayers in 2026 for reportable digital asset transactions completed during 2025, with brokers initially required to report gross proceeds but not cost basis. Beginning with transactions on or after January 1, 2026, brokers must also report cost basis for qualifying covered digital assets acquired after December 31, 2025, and held in custodial accounts until sale. The IRS also allows optional aggregate reporting methods for certain qualifying stablecoin and NFT transactions, subject to specific eligibility requirements and thresholds.
Form 1099-DA generally identifies the broker and customer, the digital asset, the quantity disposed of, the disposition date, and the proceeds reported in U.S. dollars. Beginning in 2026, covered transactions also require acquisition dates and crypto cost basis information when the broker has the necessary records.
However, assets purchased before 2026 or transferred from another wallet generally remain noncovered, meaning basis reporting is optional. Staking rewards and mining income are not reported on this form. Investors using multiple platforms may therefore receive incomplete information. Although artificial intelligence can assist with transaction reconciliation, investors must verify records before relying on calculated gains or losses.
As of November of 2026, the federal wash-sale rules generally do not apply to directly held spot cryptocurrencies such as Bitcoin and Ether because section 1091 applies to losses involving stock or securities, not property generally. An investor may therefore generally sell such cryptocurrency at a loss and reacquire it within the section 1091 period without automatic wash-sale disallowance
However, the crypto wash sale distinction becomes important for tokenized assets classified as stocks or securities, which may be subject to Internal Revenue Code Section 1091. Investors should also consider transaction costs, documentation, economic substance, and potential legislative changes before implementing loss harvesting strategies. Proper classification remains essential when determining whether losses are deductible.
Broker-reported proceeds do not necessarily equal taxable gains. Investors must subtract their adjusted basis, account for applicable fees, and reconcile transactions across exchanges and private wallets.
For example, $20,000 in reported proceeds and a $15,000 adjusted basis generally result in a $5,000 capital gain, assuming no additional adjustments. Missing acquisition records may make it difficult to establish the correct basis, so taxpayers should maintain supporting transaction histories and other documentation.
Taxpayers generally report capital transactions using Form 8949 and Schedule D, subject to applicable reporting exceptions. International investors should separately evaluate Foreign Bank Account Reporting requirements when holding reportable foreign financial accounts. Bennett Thrasher can assist with reconciling transactions, documenting basis, and evaluating reporting obligations.
For more than four decades, Bennett Thrasher has provided businesses and individuals with strategic business guidance and solutions through professional tax, audit, advisory, and business process outsourcing services. Contact Bennett Thrasher’s Business Tax Practice, or call us at 770.396.2200.
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