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What records do I keep after a small crypto win and a later loss?

Research question: What record-keeping and reporting do beginners need to follow when they sell crypto for a small gain and then take a loss on another trade?

The records show that each crypto sale is reported separately on Form 8949, and a loss is recognized when the sale happens, with no special wash sale code or adjustment ¹. The records also state that the belief that a crypto investor must wait 31 days before rebuying after a loss is incorrect under current rules ⁷. Brokers report digital asset sale proceeds to both taxpayers and the IRS on Form 1099-DA, and in some cases basis too ². Taxpayers may have to recognize gain from disposing of digital assets, which is why this broker reporting exists ⁴. The newest of these facts is dated July 13, 2026, about three months before October 2026 ³.

Checked 2026-10-18. Only documented and supported facts are used.

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Sources

[1] supported

Under current rules, Form 8949 reports each crypto disposition separately, and the loss is recognized when the sale happens with no special wash sale code or adjustment.

"Form 8949 reports each disposition. Loss is recognized at disposition. No special wash sale code or adjustment."

Crypto Wash Sale Rule (2026)

[2] documented

Brokers use Form 1099-DA to report proceeds from digital asset sales to both taxpayers and the IRS, and in some cases basis too.

"Form 1099-DA is used by brokers to report proceeds from (and in some cases, basis for) digital asset dispositions to taxpayers and to the IRS (Internal Revenue Code section 6045(a))."

Agency Information Collection Activities; New Proposed Information Collection Request; Request for Comments; Digital Asset Proceeds From Broker Transactions (Treasury Department, 2024-10-07)

[3] documented

Form 1099-DA is one of the information return forms that IRS collects burden data on, and it is listed among the forms used by information return issuers.

"These include Forms 1098, 1099-B, 1099-DA, 1099-DIV, 1099-INT, 1099-MISC, 1099-NEC, 1099-R, 5498, W-9 and all related forms, schedules, and attachments."

Agency Information Collection Activities; Comment Request on U.S. Information Returns and Related Forms, Schedules, Attachments, and Published Guidance (Treasury Department, Internal Revenue Service, 2026-07-13)

[4] supported

Taxpayers may have to recognize gain from disposing of digital assets, which is the reason the broker reporting exists.

"Taxpayers may be required to recognize gain from these dispositions of digital assets."

Agency Information Collection Activities; New Proposed Information Collection Request; Request for Comments; Digital Asset Proceeds From Broker Transactions (Treasury Department, 2024-10-07)

[5] documented

Form 1099-DA is titled for digital asset proceeds from broker transactions.

"Digital Asset Proceeds From Broker"

[6] supported

Treasury guidance T.D. 10000 addresses gross proceeds and basis reporting by brokers for digital assets, which is the reporting that would show gains and losses on crypto sales.

"Gross Proceeds and Basis Reporting by"

[7] supported

A common belief that a crypto investor must wait 31 days before rebuying after a loss is incorrect under current rules.

"'I should wait 31 days before rebuying crypto after a loss.' Incorrect under current rules. No wash sale on crypto. Sell and immediately rebuy is fine."

Crypto Wash Sale Rule (2026)

[8] supported

The paper describes existing third-party reporting of cryptocurrency transactions involving U.S. taxpayers as contentious and incomplete.

"supplement the contentious and incomplete existing third-party reporting of cryptocurrency transactions involving U.S. taxpayers"

Cryptocurrency Public Key Reporting: Using Embedded Technology to Aid Tax Compliance (2025)